US Deficit Surges to $1.4 Trillion in FY2026 Nine Months In

Nine months into FY2026, the U.S. deficit reached about $1.4 trillion as outlays ($5.5 trillion) surpassed receipts ($4.2 trillion). Most of the shortfall stems from entitlement programs (Social Security, Medicare, Medicaid) and reduced corporate tax revenue tied to policy changes, while individual taxes rose. The debt surpassed 100% of GDP and interest payments neared $1 trillion, prompting calls for entitlement reform and a bipartisan plan to restore fiscal sustainability.