# US federal budget deficit projected near $2 trillion due to debt interest and entitlements

Rising national debt interest payments and mandatory entitlement spending are driving the US federal budget deficit toward $2 trillion for fiscal year 2026. The projection underscores growing fiscal pressure on the federal budget, which could intensify policy debates over spending cuts and tax reforms.

**Importance:** 4/5

## Sources

### Business
- [Fox News Business](https://www.foxbusiness.com/politics/national-debt-interest-entitlement-spending-push-fy2026-federal-budget-deficit-toward-2-trillion) — Fri, 10 Jul 2026 20:37:40 GMT