Between January and March, the deficit reached $164 billion, four billion more than the same period a year earlier, according to data released on Friday by the Treasury Department.
The U.S. public deficit remained steady during the first three months of 2026, with the increase in revenues, particularly from income tax and tariffs, almost offsetting an acceleration in expenses. In the United States, these months make up the second quarter of fiscal year 2026. For the first six months of this fiscal year, the deficit has decreased by 11%, or $139 billion, thanks to the increase in revenues that occurred between October and December due to tariffs.
However, the Supreme Court invalidated a significant portion of these tariffs earlier this year, which should lead the Treasury to reimburse companies for these collected surcharges. Several legal proceedings have been initiated by companies in this regard, which could eventually impact the federal budget.
In the short term, revenues have increased this quarter due to a 7% rise in income tax revenue, equivalent to an additional $26 billion, and a 175% increase in tariff revenues, adding $15 billion to the state’s coffers. Meanwhile, expenses during the period for the agricultural sector, partly due to an aid program for farmers affected by U.S.-China trade tensions, increased by 90%, or $16 billion.
Another substantial increase in expenses is related to healthcare, especially programs for the poor and Medicare and Medicaid retirees, which rose by 10%, or an additional $10 billion. The next quarter will provide a clearer picture of the government’s finances, as April is traditionally the most important month in terms of revenue due to the main tax collections related to income tax.
