The U.S. borrowed $50B a week for the past five months, the CBO says

3 days ago

U.S. Treasury borrowing continues to rise, adding $1 trillion to the federal deficit in the first five months of fiscal year 2026.
The government borrowed $308 billion in February 2026 alone, with net interest on public debt increasing by $31 billion compared to the previous year.
Total interest payments on public debt reached $433 billion in five months, with the national debt nearing $38.9 trillion.
Higher long-term interest rates and increased debt levels contributed to rising interest costs, partially offset by lower short-term rates.
The deficit improved slightly compared to the previous year, but concerns remain over unsustainable fiscal policies.
Interest payments on debt are projected to exceed $1 trillion in 2026 and $2 trillion by 2036.
Calls for policymakers to reduce deficits, targeting a 3% deficit-to-GDP ratio to stabilize national debt.
Debt-to-GDP ratio is a key concern, as excessive borrowing can hinder economic growth.
Government revenues increased due to higher customs duties ($109 billion) and individual income and payroll taxes ($132 billion).
Spending rose to $3.1 trillion in five months, with major increases in social security, Medicare, and Medicaid ($104 billion).
Defense and Veterans Affairs saw spending increases, while Agriculture, Homeland Security, and Education reduced outlays.
The Environmental Protection Agency cut spending by $20 billion after clean energy grants in late 2024.

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