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U.S. deficit projected to hit $2 trillion in FY2026

Treasury’s quarterly refunding documents forecast a $2 trillion federal deficit for fiscal year 2026 — twice the 3% of GDP target backed by bipartisan lawmakers.

Published May 7, 2026, 6:36 PM EDT | WFMZZ

Treasury’s quarterly refunding documents project the federal government will post a $2 trillion deficit in fiscal year 2026. That projected shortfall is double the 3% of GDP fiscal target that has bipartisan support in Congress.