The Digester

U.S. Deficit Tops $1 Trillion Through February, Down 12% From Year Ago

Mar 11th 2026

Treasury data show a $1.004 trillion budget shortfall for the fiscal year through February as rising revenues, led by a surge in tariff collections, outpaced spending while interest costs remained high.

  • Fiscal year deficit through February was $1.004 trillion, about 12% lower than the same period a year earlier.
  • Outlays exceeded receipts by $308 billion in February, roughly matching last February’s deficit.
  • Government revenues rose faster than spending for the fiscal year to date.
  • Customs duties totaled $151 billion through five months, up $113 billion or 294% from a year earlier.
  • The Supreme Court decision on many of President Trump’s tariffs has not yet shown up in the data and potential refunds remain uncertain.
  • Corporate tax receipts fell $27 billion, or 17%, making tariff revenue higher than corporate tax revenue for the year to date.
  • Net interest payments on the nearly $39 trillion national debt were $79 billion in February, driven by elevated interest rates.