What the federal budget deficit measures
The deficit is the amount by which federal spending exceeds tax and other revenue. The Treasury reports it every month in the Monthly Treasury Statement. Single months swing widely because tax payments arrive mostly in April, June, September and January, so the chart adds up the latest 12 months at each point and shows the total in trillions of dollars, with the deficit as a positive number. Readings below zero are surpluses. The label above the chart shows the total for the current fiscal year, which runs from October to September.
How to read this chart
The 12-month total rises in recessions, when tax revenue falls and spending on unemployment benefits and stimulus jumps, and narrows in expansions. The largest spikes, in 2009 and 2020–2021, came from emergency spending. Since 2023 the deficit has stayed high outside a recession, largely because interest costs have grown. Values are in current dollars, not adjusted for inflation or the size of the economy.
The latest reading in context
- At $1.99T, the latest reading is above its 5-year average of $1.80T and above its 10-year average of $1.64T.
- That is higher than 94% of all monthly readings since September 1981 – near the top of its historical range.
- Direction: up $0.22T over the past month; up $0.36T over the past six months; up $0.22T over the past year.
- The highest value on record is $4.09T (March 2021, 5 years ago); the lowest is −$0.28T (April 2001, 25 years ago).
- The full history spans 5 US recessions, shaded grey on the chart.
Why it matters
Each year’s deficit is added to the national debt, which the Treasury finances by selling bonds. Large deficits increase the supply of Treasury bonds, which can push up long-term interest rates, and add to future interest payments. Whether a deficit is a problem depends on the economy: borrowing in a recession supports demand, while large deficits during full employment can add to inflation.
What moves the federal budget deficit
- Tax revenue, which rises and falls with incomes and profits
- Social Security, Medicare and other mandatory spending
- Interest on the debt
- Recessions and emergency spending
- Tax law changes and tariff revenue
Key moments in its history
- 1998–2001The budget ran surpluses for four fiscal years.
- Fiscal 2009Deficit reached $1.4 trillion during the financial crisis.
- Early 2021The 12-month deficit reached about $4 trillion after pandemic relief.
- Fiscal 2024–2025Deficits of about $1.8 trillion a year despite low unemployment.
US Federal Deficit data tables
Average by decade
| Decade | Average | High | Low |
|---|---|---|---|
| 2020s (so far) | $2.05T | $4.09T | $0.96T |
| 2010s | $0.84T | $1.48T | $0.40T |
| 2000s | $0.28T | $1.47T | −$0.28T |
| 1990s | $0.14T | $0.33T | −$0.16T |
| 1980s | $0.16T | $0.22T | $0.06T |
Last 12 months
| Period | Value | Change |
|---|---|---|
| Sep 2026 | $1.99T | +$0.22T |
| Aug 2026 | $1.77T | −$0.18T |
| Jul 2026 | $1.95T | +$0.14T |
| Jun 2026 | $1.80T | +$0.15T |
| May 2026 | $1.66T | −$0.02T |
| Apr 2026 | $1.68T | +$0.04T |
| Mar 2026 | $1.64T | $0.00T |
| Feb 2026 | $1.63T | $0.00T |
| Jan 2026 | $1.63T | −$0.03T |
| Dec 2025 | $1.67T | +$0.06T |
| Nov 2025 | $1.61T | −$0.19T |
| Oct 2025 | $1.80T | +$0.03T |
Monthly values. Decade figures are averages of the monthly values in each decade. The complete history is available as a CSV file.
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US Federal Deficit: questions and answers
What is the difference between the deficit and the debt?
The deficit is one year’s shortfall between spending and revenue. The debt is the total accumulated from all past deficits, minus surpluses.
Why does the chart use a 12-month total?
Monthly figures jump around with tax deadlines and the timing of payments; April often shows a surplus. A 12-month total removes that seasonal pattern and is comparable to a fiscal-year deficit.
When did the US last have a budget surplus?
In fiscal year 2001. The government also ran surpluses in fiscal 1998, 1999 and 2000.
Where does the data on this chart come from?
From the U.S. Department of the Treasury. ChartWidgets downloads the series (MTSDS133FMS) from FRED, the Federal Reserve Bank of St. Louis database, and checks for new releases every day. The last update was on November 1, 2026.