The U.S. Congressional Budget Office (CBO), a nonpartisan agency, reported that the federal government ran an accumulated budget deficit approaching $2 trillion, or about 66 trillion baht, during the first 11 months of fiscal year 2026, which ends in September. Despite increased tax revenue, spending on welfare, healthcare, and interest on public debt continued to rise sharply.
CBO's August data indicated that this deficit figure was about $6 billion lower than the same period last year. However, this difference resulted from shifting the timing of certain payments around Labor Day 2025. Without this timing adjustment, the deficit this year would be roughly $82 billion higher than last year.
In the first 11 months of fiscal year 2026, U.S. government spending rose by $147 billion, or 2%, compared to the previous year. Adjusted for payment timing changes, spending would have increased by $235 billion, or 4%.
Most of the spending increase came from mandatory programs such as Social Security, Medicare, and Medicaid, along with interest expenses on the government's public debt.
Social Security welfare spending grew by $78 billion, or 5%, from the previous year due to higher average benefit amounts and more beneficiaries. Medicare expenses increased by $73 billion, or 8%, reflecting a growing participant count. Medicaid spending rose by $47 billion, or 8%, driven by higher average costs per beneficiary.
Another key factor was a $111 billion, or 12%, increase in interest payments on public debt compared to the previous year. This rise stemmed from higher overall debt levels and increased long-term interest rates, although lower short-term rates somewhat eased the burden.
The Department of Veterans Affairs saw spending increase by $41 billion, or 14%, due to more beneficiaries and higher per-person costs. Meanwhile, the Department of Defense's expenses rose by $41 billion, or 5%, driven by increased military personnel costs and higher research and development spending.
However, the Department of Education's spending dropped by $79 billion, or 56%, mainly because of a $53 billion downward revision in estimated outstanding student loan costs in June 2026, following a $24 billion upward adjustment in July 2025.
Meanwhile, federal tax revenue increased by $154 billion, or 3%, in the first 11 months of the fiscal year. Individual income tax revenue rose by $189 billion, or 8%, and payroll tax revenue grew by $50 billion, or 3%. Customs revenue, including import taxes, increased by about $1 billion, or 1%.
However, this revenue growth was partially offset by a $96 billion, or 25%, decline in corporate income tax revenue, which the CBO attributed to the 2025 tax reforms under the One Big Beautiful Bill Act.
Maya McGinnis, Chair of the Committee for Responsible Federal Budgeting, a nonpartisan organization, said the U.S. government's borrowing this fiscal year has already surpassed the total amount borrowed during the entire previous fiscal year and is expected to rise further in September, the fiscal year 2026's final month.
McGinnis warned that the U.S. fiscal situation is severe, with total public debt recently reaching $40 trillion. Annual government interest payments now exceed the defense budget, and publicly held debt has grown larger than the size of the national economy.
She also cautioned that the trust funds for welfare programs relied upon by tens of millions of Americans face the risk of insolvency within less than 10 years.
McGinnis stated that U.S. politicians have postponed difficult decisions for too long and should collaborate to develop a plan to reduce the budget deficit to 3% of GDP—about half the current level—and urgently address the security of welfare funds; otherwise, future generations could bear the burden of difficult or irreversible fiscal problems.
. FOX News