But that improvement did not come from Washington suddenly tightening its belt. It came mainly from stronger revenue.<\/p>\n\n\n\n
Federal debt and interest costs are still climbing<\/h2>\n\n\n\n
That distinction matters. A smaller gap is helpful, of course, but it does not automatically mean the government\u2019s finances are getting healthier. Treasury data<\/a> showed total public debt outstanding at about $38.88 trillion on March 11, 2026.<\/p>\n\n\n\n At the same time, the CBO said net interest outlays on the public debt rose by $31 billion in the first five months from a year earlier, and its longer range outlook<\/a> says net interest is on track to move above $1 trillion in fiscal year 2026.<\/p>\n\n\n\n So what helped soften the blow? Mostly revenue. The CBO said receipts totaled $2.1 trillion in the first five months of the fiscal year, and collections of customs duties, including tariffs<\/a>, were more than four times the level seen a year earlier.<\/p>\n\n\n\n In practical terms, tariff income<\/a> and other tax receipts gave the government a bigger cash cushion, even as the broader spending picture stayed heavy.<\/p>\n\n\n\n Still, budget experts usually look past the headline debt number and focus on debt relative to the size of the economy. <\/p>\n\n\n\n Treasury<\/a> says the debt to GDP ratio is a better gauge of fiscal strain because it shows the burden of borrowing against national output. And the CBO\u2019s February outlook projects federal debt will rise to 120 percent of GDP by 2036 under current law.<\/p>\n\n\n\n That is the warning light many economists keep watching.<\/p>\n\n\n\n Maya MacGuineas of the Committee for a Responsible Federal Budget<\/a> put it bluntly when she said, “This cannot be sustainable.” Her group is pushing a 3% deficit to GDP target. Whether lawmakers can agree on that kind of path is another matter.<\/p>\n\n\n\n But the broader message is hard to miss. When interest costs keep rising, more public money goes to servicing old debt and less is left for everything else, simple as that.<\/p>\n\n\n\n The official report was published on CBO<\/a><\/em>.<\/p>\n","protected":false},"excerpt":{"rendered":" A trillion dollars in red ink sounds bad enough. The bigger question is what is hiding underneath it. The Congressional … <\/p>\nAlso Read: Another major sporting goods chain is entering a delicate phase in 2026, and the signs are already there: annual sales of around $1.209 billion, net debt of close to $90 million, inventory reduction, and intense pressure in a sector where Bob’s, Moosejaw, Next Adventure, and other companies have already fallen<\/a><\/h4>\n<\/div>\n<\/div><\/div>\n<\/div>\n\n\n\n
Tariffs and tax receipts helped narrow the deficit<\/h2>\n\n\n\n
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Debt-to-GDP remains the key warning sign<\/h2>\n\n\n\n
Also Read: The United States is already borrowing $43.5 billion a week, and the cost of debt is entering a worrying zone<\/a><\/h4>\n<\/div>\n<\/div><\/div>\n<\/div>\n\n\n\n
Budget watchdogs warn the path is not sustainable<\/h2>\n\n\n\n
Also Read: Texas is full of oil wells that barely produce but never seem to die, and landowners say the real cost is leaking onto their property<\/a><\/h4>\n<\/div>\n<\/div><\/div>\n<\/div>\n\n\n\n