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The U.S. federal government posted a budget deficit of $307.5 billion in February 2026, widening slightly from the $296.3 billion shortfall recorded in February 2025. Total receipts declined 43.9% from the previous month to $313.3 billion, primarily reflecting seasonal normalization in tax collections. The main revenue sources were individual income taxes ($133.4 billion), social insurance and retirement contributions ($144.4 billion), and customs duties ($26.6 billion). The monthly figure also reflected timing-related adjustments in corporate and other miscellaneous receipts following earlier peaks.
On the spending side, total outlays decreased 5.1% from the prior month to $620.8 billion. The largest expenditure categories were Social Security ($138.4 billion), Health and Medicare ($155.6 billion), and national defense ($71.1 billion). Overall spending levels were affected by the acceleration of certain benefit payments into February, because March 1 fell on a non-business day, shifting some scheduled disbursements into the earlier month.
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