The U.S. Treasury added another $1 trillion to the federal deficit in the first five months of fiscal year 2026, borrowing approximately $50 billion every week and pushing the national debt toward $39 trillion, the Congressional Budget Office reported Tuesday.
The February monthly budget review shows the government borrowed $308 billion last month alone — a pace that has budget hawks sounding alarms about the nation’s fiscal trajectory.
Interest payments on the debt are now expected to exceed $1 trillion this year, according to Maya MacGuineas, president of the Committee for a Responsible Federal Budget. By 2036, that figure could surpass $2 trillion.
“This cannot be sustainable,” MacGuineas said. “Our fiscal problems will not solve themselves. We need policymakers to come together, agree to reduce deficits — a 3% deficit-to-GDP target would be a great start — and put our national debt on a downward sustainable path as a share of the economy.”
The Numbers
Between October 2025 (the start of the fiscal year) and February 2026, the Treasury spent $433 billion servicing public debt — a $31 billion increase over the same period last year.
The CBO attributed the rise to “the debt was larger than it was in the first five months of fiscal year 2025, and because of higher long-term interest rates.” It noted that “declines in short-term interest rates partially mitigated the overall rise in interest payments.”
The national debt now stands at approximately $38.9 trillion.
The Deficit Picture
Despite the eye-watering totals, this year’s deficit actually improved compared to the same period last year. Between October 2024 and February 2025, the government borrowed an additional $142 billion compared to this year’s figure.
The improvement came not from spending cuts, but from higher revenues.
Collections of customs duties — including tariffs — were more than four times the amount recorded in the first five months of last year, an increase of $109 billion. While some duties collected in 2025 will have to be returned following the Supreme Court’s February 20 ruling striking down Trump’s global tariffs, subsequent tariffs announced by the administration have partially offset the expected shortfall.
Individual income and payroll taxes increased by $132 billion.
Spending, however, also grew. Total outlays reached $3.1 trillion in the first five months — $64 billion more than the same period last year. Social Security, Medicare, and Medicaid spending rose by $104 billion. Defense and Veterans Affairs spending also increased.
The Agriculture, Homeland Security, and Education departments reduced outlays. The Environmental Protection Agency reported a $20 billion decrease, reflecting the end of a clean energy grant program established by the 2022 reconciliation act.
The Real Concern
Economists aren’t necessarily alarmed by the total level of debt — government debt is a foundation of global markets. The real concern is the debt-to-GDP ratio, which measures borrowing against economic growth.
If that ratio tips too far out of balance, growth can be hampered by the excessive cash needed for interest payments.
In recent years, the deficit-to-GDP figure — which ties government borrowing to economic output — has hovered between 5% and 6%. MacGuineas’s call for a 3% target represents a significant reduction.
“Our fiscal problems will not solve themselves,” she said. “We need policymakers to come together.”
What Comes Next
The borrowing shows no signs of slowing. The war with Iran has added billions in military spending. The administration’s tariff policy remains in flux following the Supreme Court ruling. And interest rates, while showing some signs of easing, remain elevated.
For budget hawks, the numbers are a warning. For the Treasury, they’re just another month’s work. And for the national debt, now approaching $39 trillion, the $50 billion weekly borrowing rate is simply the new normal.
