{
  "id": 15288768,
  "title": "US budget deficit grows to $2 trillion, highest since 2021",
  "url": "https://urgent.news/2026/10/17/us-budget-deficit-grows-to-2-trillion-highest-since-2021",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-17T21:28:00.000Z",
  "source": {
    "name": "Qatar Tribune Business",
    "slug": "qatar-tribune-business",
    "url": "https://www.qatar-tribune.com/article/259583/business/us-budget-deficit-grows-to-2-trillion-highest-since-2021"
  },
  "original_language": "en",
  "account": "The U.S. budget deficit reached nearly $2 trillion over the past year, according to government data released Friday. This marked the highest level since 2021, despite President Donald Trump's repeated promises to reduce public spending. The spike in the deficit is attributed to several factors, including rising interest payments on the nation's massive $32 trillion debt load, which climbed to a record $1.36 trillion. Additionally, the cost of borrowing has increased, further straining the federal budget. Trump's trade policies also played a role, as refunds from overturned tariffs contributed to the growing budget gap. The federal deficit increased by 12% from the previous year, climbing from $1.78 trillion to $1.99 trillion in fiscal year 2026. This rise in expenditures was primarily driven by higher interest costs on the public debt and the ongoing impact of Trump's tariffs. Despite an expected revenue influx from these tariffs, they have not materialized as expected, leaving a deficit of $1.99 trillion. The latest government revenues climbed by 3% to $5.40 trillion, while spending surged by 6% to $7.40 trillion. The deficit for the upcoming year is projected to remain similar, according to Nancy Vanden Houten of Oxford Economics. However, she cautioned that the budget gap could widen if the conflict with Iran continues into the fiscal year. The Trump administration has consistently pledged to cut deficits and government spending since returning to the White House. While they attempted to reduce costs by cutting the federal workforce and foreign aid, they also extended tax cuts and provided additional funding for Trump's deportation drive. The latest data showed that tax collections from individuals and customs revenues were partially offset by higher refunds and lower corporate tax collection. Among other sectors, defense spending increased by $48 billion, or 6%, reaching $917 billion. The budget deficit-to-GDP ratio stands at approximately 6.2%, up from 5.8% the previous year. This is in contrast to Treasury Secretary Scott Bessent's earlier goal of reducing the deficit to 3% of GDP and spurring economic growth of 3%. The data were released just days before the U.S. midterm elections, where both Republicans and Democrats have proposed policies that could potentially exacerbate the budget shortfall.",
  "summary": "AgenciesThe US budget deficit grew to almost $2 trillion over the past year, government data showed Friday, reaching its highest level since 2021 despite President Donald Trump’s p...",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}