The US government recorded a $293 billion budget deficit in May 2026, compared with a $316 billion gap a year earlier, but wider than forecasts of a $275 billion shortfall. Government outlays declined to $628 billion from $687 billion. The largest spending categories were Social Security ($140 billion), net interest payments ($107 billion), Medicare ($87 billion), and health programs ($82 billion). Meanwhile, receipts fell to $335 billion from $371 billion. The main sources of revenue were social insurance and retirement contributions ($157 billion), individual income taxes ($152 billion), and corporate income taxes ($11 billion). In the first eight months of fiscal year 2026, the federal budget deficit totaled $1.25 trillion.