The US federal budget deficit widened during the first nine months of fiscal year 2026, amid a wave of tariff refunds ordered after the Supreme Court struck down the duties in February, and mounting public debt servicing costs.
Data released Monday by the Treasury Department showed the federal budget recorded a deficit of $120.3 billion in June alone, compared with a surplus of $27 billion in the same month last year.
This pushed the cumulative deficit for fiscal year 2026 up 2% year-on-year to $1.37 trillion.
The Treasury Department refunded $49 billion in cancelled tariffs last month, while the total estimated amount still to be returned following the Supreme Court ruling stands at around $166 billion.
Debt servicing costs continued to weigh on the US budget, with net interest payments reaching $104 billion in June and $827 billion since the start of the fiscal year, while Social Security and healthcare expenditure continued to rise.