U.S. CRFB Head Maya MacGuineas Says Borrowing Remains Much Too High In 2026, Says U.S. On Course For $2T Deficit This Year

MacGuineas said that despite being more than a quarter into it, the U.S. government is still not fully funded for the rest of the fiscal year.

• The U.S. borrowed $145 billion in the month of December, according to the latest monthly Treasury statement from the Treasury Department.
• Recent data from the U.S. Treasury showed that the U.S. budget deficit lowered to $1.67 trillion for the 2025 calendar year.
• President Donald Trump recently hailed the latest economic data showing a sharp narrowing of the country’s trade deficit. 

The United States borrowed $602 billion in the first three months of Fiscal Year (FY) 2026, which began on Oct. 1, including $145 billion in the month of December, according to the latest monthly Treasury statement from the Treasury Department.

The U.S. is still on course for a nearly $2 trillion deficit this year, Maya MacGuineas, president of the Committee for a Responsible Federal Budget said. 

“Despite being more than a quarter into it our government is still not fully funded for the rest of the fiscal year, with another funding deadline around the corner in just over two weeks,” MacGuineas added. 

Tariffs Boost

On a brighter note, data from the Treasury showed that the U.S. budget deficit lowered to $1.67 trillion for the 2025 calendar year, which is the smallest total in the past three years, helped by a tariff boost. 

Donald Trump’s global tariffs have resulted in the U.S. earning higher in customs revenue, helping to bridge some gap in U.S. budget deficit. 

Trump Hailing Data

Trump recently hailed the latest economic data showing a sharp narrowing of the country’s trade deficit, calling it “a direct result of the tariffs,” ahead of a keenly watched Supreme Court ruling on his move that took markets by storm in April last year. 

The U.S. trade gap narrowed 39% to $29.4 billion in October, the lowest level since June 2009, the Commerce Department's Bureau of Economic Analysis and Census Bureau said last week.

Market Reaction

U.S. equities fell in Tuesday’s after-hours trading. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, fell 0.2%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘neutral’ territory. 

The Invesco QQQ Trust ETF (QQQ) also fell 0.15%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 0.09% in after-market hours.