The US budget deficit grew to almost $2 trillion over the past year, government data showed Friday, reaching its highest level since 2021 despite President Donald Trump's promises to cut public spending.
The expansion comes amid growing worries over the massive $40.3 trillion US debt load and rising inflation, as the cost of borrowing climbs.
Refunds of Trump's tariffs after they were overturned have further fueled the budget gap.
The federal deficit, which occurs when government spending exceeds its revenues, rose to $1.99 trillion in fiscal year 2026, the Treasury Department said.
This marked a 12-percent increase from the prior year, when the shortfall came in at $1.78 trillion.