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Treasury Expects to Borrow Over $2 Trillion This Fiscal Year

The projections signal mounting fiscal strain driven by rising interest costs.

Overview

  • Treasury’s latest quarterly refunding presentation to the Treasury Borrowing Advisory Committee, a panel of bond market participants, shows an OMB forecast for a $2.06 trillion deficit in fiscal 2026 and financing needs that exceed $2 trillion in new debt.
  • Treasury’s figures run higher than the Congressional Budget Office’s $1.85 trillion baseline and a $1.95 trillion median from primary dealers, highlighting a wide gap in official estimates.
  • Interest on the debt totaled nearly $530 billion from October through March, roughly $88 billion each month, which leaves less money for programs like defense and education.
  • Treasury data show the national debt now tops the size of the economy and is nearing $39 trillion, drawing fresh concern from budget watchdogs.
  • Bipartisan backers in the House are pushing a 3% of GDP deficit target by 2030 in H.Res.981 as the Government Accountability Office warns the fiscal path is unsustainable.