US Annual Deficit Hits $1.8 Trillion Through September

The Federal government of the United States recorded an annual deficit of $1.8 trillion through the first 10 months of the current fiscal year. Projections indicate the deficit will exceed $2 trillion by year-end, despite a backdrop of economic growth and low unemployment. High borrowing costs have pushed the U.S. Treasury yield to a 19-year high of 5.34 percent, meaning nearly 20 cents of every tax dollar is now spent on interest payments.

Fiscal pressure is expected to increase as the Congressional Budget Office estimates that the Republicans' Big Beautiful Bill reconciliation package will add between $3.4 trillion and $4.5 trillion to the national debt over the next decade.

President Donald Trump proposed a 10 percent cut in non-defense spending in his 2027 budget, though these reductions are offset by higher defense spending. Simultaneously, the administration is seeking a 19 percent increase in discretionary spending from Congress, marking the second-largest increase in 60 years. The Committee for a Responsible Federal Budget characterized these current borrowing levels as "not normal."