The U.S. budget deficit inched closer to $2 trillion after the first 11 months of fiscal year 2026, the Treasury Department reported on Sept. 11.
August’s Monthly Treasury Statement showed the federal government logging a $167 billion shortfall, far below the consensus estimate of a $404 billion deficit.
Last month’s shortfall marked a 61 percent decline from July’s $432 billion gap. It was also down 52 percent from August 2025’s $345 billion deficit.
Overall, the fiscal year-to-date budget deficit totaled $1.97 trillion, almost $200 billion higher than the same 11-month span in the prior fiscal year.
Tax receipts were $360 billion last month, bringing this fiscal year’s total to nearly $4.9 trillion. This was slightly lower than the $5.2 trillion posted during the same 11-month span in fiscal year 2025….