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U.S. Treasury to Borrow Over $2 Trillion in FY 2026.

5/10/2026

Summary

Treasury Borrows

The U.S. Treasury will borrow over $2 trillion in fiscal year 2026.
The Office of Management and Budget projects deficits of $2.06 trillion for FY2026 and $2.17 trillion for FY2027, creating $166-$181 billion of new debt each month.
Interest payments are expected to total $530 billion from October 2025 to March 2026, about $88 billion per month.
Maya MacGuineas warned $2 trillion deficits are now normal, with a Peterson poll showing 92 % of voters prioritize debt reduction.

Summary

Powell Warns

Primary dealers surveyed by the Treasury estimated privately-held net marketable borrowing at roughly $2.04 trillion in fiscal year 2026.
The Treasury projected $189 billion borrowing in Q3 and $671 billion in Q4 FY 2026, while thirty-year yields rose toward 5% and annual interest payments topped $1.2 trillion.
Fed Chair Jerome Powell called the debt path “unsustainable” and warned, alongside economist Mohamed El-Erian, that rising issuance could further pressure yields.

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Treasury Borrows

The U.S. Treasury will borrow over $2 trillion in fiscal year 2026.
The Office of Management and Budget projects deficits of $2.06 trillion for FY2026 and $2.17 trillion for FY2027, creating $166-$181 billion of new debt each month.
Interest payments are expected to total $530 billion from October 2025 to March 2026, about $88 billion per month.
Maya MacGuineas warned $2 trillion deficits are now normal, with a Peterson poll showing 92 % of voters prioritize debt reduction.

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