U.S. Government Borrows $43.5 Billion Weekly in First Fiscal Quarter

Rowan Ashford

Published: February 10, 2026 11:52 AM ET

The U.S. government’s spending habits have resulted in significant borrowing during the initial months of fiscal year 2026. The latest report from the Congressional Budget Office (CBO) revealed that the government borrowed $696 billion during the first four months of FY26, which started in October 2025.

U.S. Government Borrows $43.5 Billion Weekly in First Fiscal Quarter

In this period, the weekly borrowing average reached $43.5 billion. Specifically, January saw a sharp increase, with borrowing amounting to $94 billion alone.

Current Financial Landscape

The growing deficit has raised concerns over the sustainability of U.S. finances. As of now, the national debt exceeds $38.5 trillion, while the Gross Domestic Product (GDP) stands at approximately $31 trillion, according to the Federal Reserve Bank of St. Louis.

Total National Debt: Over $38.5 trillion
U.S. GDP: About $31 trillion
Interest Payments (as of January 31, 2026): $427 billion

Projections suggest that if current spending and borrowing trends continue, the government may face an annual interest expense of around $1 trillion. This estimate aligns with previous fiscal years where interest payments reached $1.13 trillion in FY2024 and escalated to $1.22 trillion in FY2025.

Concerns from Financial Experts

Maya MacGuineas, president of the Committee for a Responsible Federal Budget, expressed alarm over these trends. She warned that if borrowing continues at this pace, the projected deficit for the year could reach or exceed $1.8 trillion. MacGuineas highlighted the dire implications of rising national debt, currently close to the size of the U.S. economy.

Despite these alarming statistics, market reactions remain relatively stable. Bond yields are seen as indicators of investor confidence. Currently, 30-year Treasury yields are around 4.8%, while ten-year yields are approximately 4.2%.

Potential Economic Outcomes

Experts have discussed various strategies to manage the debt crisis. These include:

Financial Repression: Mandating institutions to hold more debt, supporting its value.
Rising Inflation: Allowing inflation to erode the real value of debt, negatively impacting consumers.
Quantitative Easing: Increasing the money supply to help lower borrowing costs.

While these approaches may bolster confidence among investors, the underlying issue of an unhealthy debt-to-GDP ratio remains unresolved. Notably, Ray Dalio, founder of Bridgewater Associates, has highlighted the chronic nature of U.S. borrowing, suggesting that excessive debt servicing impacts overall economic health.

The importance of bipartisan cooperation in addressing these financial challenges has never been clearer. As discussions continue, the urgency to tackle the growing deficit remains a prime concern for lawmakers and economists alike.