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The US Treasury's budget deficit rose +2% YoY in March, to $164 billion, above the $153 billion expected.
Adjusted for the timing of certain benefit payments that shifted between months, the March deficit would have been $250 billion, significantly worse than a year ago.
The US deficit is now at $1.17 trillion over the first 6 months of FY2026, the 3rd-worst first-half in history.
Meanwhile, military outlays increased by just +3% YoY in March, to $65 billion, indicating spending tied to the Iran War has not yet shown up, suggesting future deficits will be sharply higher.
Deficit spending remains historically high.