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flag U.S. deficit hits $1 trillion in first five months of 2026, driven by rising health and debt costs, despite higher tax revenues.

flag The U.S. budget deficit reached $1 trillion in the first five months of fiscal year 2026, down $142 billion from the same period in 2025, according to the CBO. flag Federal spending rose to $3.1 trillion, driven by higher costs in Social Security, Medicare, and Medicaid, while tax revenues climbed to $2.1 trillion, boosted by stronger income and payroll taxes and a surge in customs duties. flag Corporate tax collections fell sharply due to expanded deductions. flag Interest payments on the national debt rose 8% to $433 billion. flag The CBO projects a full-year deficit of $1.9 trillion for 2026 and warns deficits will grow to $3.1 trillion by 2035, threatening long-term fiscal stability.

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