The Deficit Hit Nearly $2 Trillion. Own It, Cut Spending, and Stop Pretending Interest Is Free
CBO's September review puts the FY2026 deficit at $1.993 trillion, with net interest up $115 billion to about $1.14 trillion. In our view, America cannot tariff, grow or DOGE its way out of this without Congress cutting what it spends.
By Clara Hughes
ALTAS WORLD NEWS OPINION | By Clara Hughes, Chief Opinion Editor | October 12, 2026 | 6-min read The fiscal year ended Sept. 30. The scorekeepers have spoken. According to the Congressional Budget Office's September 2026 Monthly Budget Review (released Oct. 8), the federal deficit for fiscal 2026 came in at $1.993 trillion — $218 billion higher than the $1.775 trillion deficit in fiscal 2025 [1]. Net interest on the debt jumped $115 billion, to $1.143 trillion, and is the second-largest federal outlay after Social Security [1][2][3]. In our view, that is a national-security problem dressed up as a spreadsheet. America can project power abroad only if it stops borrowing like a drunk sailor at home. Key Takeaways CBO's preliminary FY2026 deficit is $1.993 trillion, up $218 billion (12%) from $1.775 trillion in FY2025 [1]. Outlays were $7.396 trillion; receipts $5.403 trillion. Receipts rose 3% ($169 billion); outlays rose 6% ($386 billion) [1]. Net interest rose $115 billion (11%) to $1.143 trillion — about 15% of all federal spending [1][3]. Debt held by the public ended the year at about $32.4 trillion, up $2.3 trillion from a year earlier, per