US Budget Deficit Narrows in May

The US government recorded a $293 billion budget deficit in May 2026, compared with a $316 billion gap a year earlier, but wider than forecasts of a $275 billion shortfall. Government outlays declined to $628 billion from $687 billion. The largest spending categories were Social Security ($140 billion), net interest payments ($107 billion), Medicare ($87 billion), and health programs ($82 billion). Meanwhile, receipts fell to $335 billion from $371 billion. The main sources of revenue were social insurance and retirement contributions ($157 billion), individual income taxes ($152 billion), and corporate income taxes ($11 billion). In the first eight months of fiscal year 2026, the federal budget deficit totaled $1.25 trillion.

The US government recorded a $215 billion budget surplus in April 2026, down from $258.4 billion in the same month a year earlier and below forecasts of a $220 billion surplus. Government outlays rose to $622.3 billion from $591.8 billion in April 2025. The largest spending categories were Social Security ($139 billion), net interest payments ($97 billion), Medicare ($88 billion), and national defense ($77 billion). Meanwhile, receipts declined to $837.3 billion from $850.2 billion a year earlier. Most revenue came from individual income taxes ($515 billion), social insurance and retirement contributions ($196 billion), and corporate income taxes ($83 billion). So far in fiscal year 2026, the US government has accumulated a budget deficit of $954 billion.

The US government recorded a $164.1 billion budget deficit in March 2026, compared with a $160.5 billion deficit a year earlier, and missing forecasts of $156.7 billion. Outlays increased to $549 billion from $528.2 billion, with most spending directed to social security at $139 billion, net interest at $94 billion, healthcare at $90 billion, and national defense at $69 billion. Receipts rose to $384.9 billion from $367.6 billion, driven by individual income taxes at $189 billion, social insurance and retirement at $152 billion, and customs duties at $22 billion.