Government Receipts and Expenditures
Second Quarter 2026
Net government saving, the difference between current receipts and current expenditures in the federal government and state and local governments, was −$2,033.0 billion in the second quarter of 2026, decreasing $37.2 billion from −$1,995.8 billion in the first quarter of 2026 (charts 1 and 2 and table 1).
“Net lending or net borrowing (−)” is an alternative measure of the government fiscal position. Net borrowing is the financing requirement of the government sector, and it is derived as net government saving plus the consumption of fixed capital and net capital transfers received less gross investment and net purchases of nonproducer assets.
Net borrowing was $2,275.9 billion in the second quarter, decreasing $604.4 billion from $2,880.3 billion in the first quarter (charts 3 and 4 and table 1).
| Line | Level | Change from preceding quarter | ||||
|---|---|---|---|---|---|---|
| 2026 | 2025 | 2026 | ||||
| Q2 | Q3 | Q4 | Q1 | Q2 | ||
| 1 | Current receipts | 9,275.2 | 188.3 | 144.1 | 36.9 | 169.6 |
| 2 | Current expenditures | 11,308.3 | 149.7 | 46.8 | 147.9 | 206.9 |
| 3 | Net government saving | −2,033.0 | 38.5 | 97.3 | −110.9 | −37.2 |
| 4 | Federal | −1,699.3 | 97.9 | 94.4 | −85.4 | 31.6 |
| 5 | State and local | −333.8 | −59.4 | 2.9 | −25.5 | −68.9 |
| 6 | Net lending or net borrowing (−) | −2,275.9 | 41.6 | 127.7 | −758.4 | 604.4 |
| 7 | Federal | −1,825.4 | 103.6 | 99.3 | −703.2 | 666.7 |
| 8 | State and local | −450.5 | −62.0 | 28.4 | −55.1 | −62.4 |
U.S. Bureau of Economic Analysis
Net federal government saving was −$1,699.3 billion in the second quarter, increasing $31.6 billion from −$1,730.9 billion in the first quarter (table 2). In the second quarter, current receipts accelerated and current expenditures decelerated.
Federal government net borrowing was $1,825.4 billion in the second quarter, decreasing $666.7 billion from $2,492.1 billion in the first quarter.
- Personal current taxes (line 3) turned up in the second quarter, increasing $11.3 billion after decreasing $45.7 billion in the first quarter, reflecting an upturn in nonwithheld taxes. In the first quarter, nonwithheld taxes were held down by an increase in refunds. Annual changes in the amount of income taxes collected through final settlements and in the amount returned to taxpayers as refunds each year are reflected in the first quarter. Withheld taxes also turned up in the second quarter, following the pattern of wages.
- Taxes on production and imports (line 4) decreased less in the second quarter, decreasing $20.5 billion after decreasing $39.3 billion in the first quarter. Net customs duties decreased less, decreasing $19.8 billion after decreasing $40.5 billion in the first quarter, reflecting enacted tariffs and the pattern of imports.
- Taxes on corporate income (line 5) accelerated in the second quarter, increasing $104.5 billion after increasing $40.2 billion in the first quarter.
- Contributions for government social insurance (line 7) decelerated in the second quarter, increasing $22.8 billion after increasing $57.6 billion in the first quarter, reflecting decelerations in contributions for FICA (Federal Insurance Contributions Act) by employers, employees, and the self-employed and contributions for Supplementary Medical Insurance premiums paid by persons.
- Current transfer receipts (line 9) decreased more in the second quarter, decreasing $10.3 billion after decreasing $1.1 billion in the first quarter, reflecting a larger decrease in current transfer receipts from business. The larger decrease reflects the end of the special assessment collected by the Federal Deposit Insurance Corporation (FDIC). The special assessment was collected over several quarters, ending in the first quarter, and recovered losses to the Deposit Insurance Fund associated with protecting uninsured depositors following the closures of certain banks.
- Consumption expenditures (line 12) decelerated in the second quarter, increasing $1.6 billion after increasing $17.7 billion in the first quarter, reflecting a deceleration in nondefense consumption expenditures (line 14), partially offset by an acceleration in defense consumption expenditures (line 13). The deceleration in nondefense consumption expenditures reflects an acceleration in sales to other sectors, specifically an increase in Strategic Petroleum Reserve sales. The acceleration in national defense consumption expenditures reflects an acceleration in spending for services.
- Government social benefits to persons (line 17) decelerated in the second quarter, increasing $29.9 billion after increasing $52.8 billion in the first quarter. The deceleration reflects a deceleration in Social Security benefit payments; first-quarter benefits were boosted by a 2.8 percent cost-of-living adjustment. Partially offsetting, payments of health insurance premium tax credits related to the Affordable Care Act decreased less, reflecting the pattern of enrollments.
- Grants-in-aid to state and local governments (line 20) accelerated in the second quarter, increasing $39.0 billion after increasing $1.6 billion in the first quarter, reflecting an acceleration in Medicaid grants.
- Interest payments (line 22) turned up in the second quarter, increasing $26.8 billion after decreasing $12.1 billion in the first quarter, reflecting an upturn in interest paid on public issues of debt.
- Subsidies (line 23) turned down in the second quarter, decreasing $3.9 billion after increasing $41.5 billion in the first quarter, reflecting a downturn in agricultural subsidies. The first quarter included assistance provided to farmers through the Farmer Bridge Assistance Program, which provided temporary bridge payments to eligible producers until longer-term farm support was implemented.
- Capital transfer receipts (line 29) turned down in the second quarter, decreasing $41.9 billion after increasing $41.7 billion in the first quarter, reflecting a downturn in capital transfers from businesses and the rest of the world. The first quarter included a payment to the federal government associated with a government-facilitated business transaction.
- Capital transfer payments (line 33) turned down in the second quarter, decreasing $674.4 billion after increasing $666.3 billion in the first quarter. The first quarter included the International Emergency Economic Powers Act tariff refunds. For more information, see the FAQ.
| Line | Level | Change from preceding quarter | ||||
|---|---|---|---|---|---|---|
| 2026 | 2025 | 2026 | ||||
| Q2 | Q3 | Q4 | Q1 | Q2 | ||
| 1 | Current receipts | 6,056.0 | 163.0 | 97.4 | 19.1 | 119.1 |
| 2 | Current tax receipts | 3,814.0 | 141.5 | 77.3 | −44.7 | 98.0 |
| 3 | Personal current taxes | 2,731.5 | 45.8 | 24.9 | −45.7 | 11.3 |
| 4 | Taxes on production and imports | 413.5 | 65.7 | 34.1 | −39.3 | −20.5 |
| 5 | Taxes on corporate income | 623.7 | 32.7 | 17.2 | 40.2 | 104.5 |
| 6 | Taxes from the rest of the world | 45.3 | −2.8 | 1.2 | −0.1 | 2.8 |
| 7 | Contributions for government social insurance | 2,061.8 | 15.8 | 17.3 | 57.6 | 22.8 |
| 8 | Income receipts on assets | 101.8 | 3.3 | 8.8 | 10.3 | 11.1 |
| 9 | Current transfer receipts | 78.0 | 1.5 | −3.4 | −1.1 | −10.3 |
| 10 | Current surplus of government enterprises | 0.5 | 1.0 | −2.6 | −2.9 | −2.5 |
| 11 | Current expenditures | 7,755.3 | 65.1 | 3.0 | 104.5 | 87.5 |
| 12 | Consumption expenditures | 1,499.7 | 16.3 | −21.4 | 17.7 | 1.6 |
| 13 | National defense | 949.0 | 23.0 | −1.5 | 13.1 | 29.0 |
| 14 | Nondefense | 550.7 | −6.8 | −19.9 | 4.6 | −27.4 |
| 15 | Current transfer payments | 4,829.1 | 0.5 | 22.6 | 57.4 | 63.0 |
| 16 | Government social benefits | 3,764.6 | −4.4 | 39.0 | 53.8 | 31.0 |
| 17 | To persons | 3,724.4 | −4.7 | 39.4 | 52.8 | 29.9 |
| 18 | To the rest of the world | 40.1 | 0.3 | −0.4 | 1.1 | 0.9 |
| 19 | Other current transfer payments | 1,064.5 | 4.9 | −16.4 | 3.5 | 32.1 |
| 20 | Grants-in-aid to state and local governments | 1,026.3 | 15.9 | −14.4 | 1.6 | 39.0 |
| 21 | To the rest of the world | 38.3 | −11.0 | −2.0 | 1.9 | −6.8 |
| 22 | Interest payments | 1,279.7 | 41.2 | 26.7 | −12.1 | 26.8 |
| 23 | Subsidies | 146.8 | 7.1 | −24.9 | 41.5 | −3.9 |
| 24 | Net federal government saving | −1,699.3 | 97.9 | 94.4 | −85.4 | 31.6 |
| 25 | Social insurance funds | −921.5 | 32.0 | −23.3 | −26.3 | −25.3 |
| 26 | Other | −777.8 | 65.9 | 117.7 | −59.1 | 56.9 |
| Addenda: | ||||||
| 27 | Total receipts | 6,099.6 | 166.1 | 100.4 | 60.8 | 77.2 |
| 28 | Current receipts | 6,056.0 | 163.0 | 97.4 | 19.1 | 119.1 |
| 29 | Capital transfer receipts | 43.6 | 3.0 | 3.1 | 41.7 | −41.9 |
| 30 | Total expenditures | 7,925.0 | 62.4 | 1.2 | 764.0 | −589.5 |
| 31 | Current expenditures | 7,755.3 | 65.1 | 3.0 | 104.5 | 87.5 |
| 32 | Gross government investment | 468.9 | 3.9 | −0.9 | 0.5 | 5.3 |
| 33 | Capital transfer payments | 138.1 | 0.6 | 6.7 | 666.3 | −674.4 |
| 34 | Net purchases of nonproduced assets | −2.1 | −0.3 | 0.2 | −0.8 | −1.2 |
| 35 | Less: Consumption of fixed capital | 435.1 | 6.9 | 7.8 | 6.5 | 6.7 |
| 36 | Net lending or net borrowing (−) | −1,825.4 | 103.6 | 99.3 | −703.2 | 666.7 |
U.S. Bureau of Economic Analysis
Net state and local government saving was −$333.8 billion in the second quarter, decreasing $68.9 billion from −$264.9 billion in the first quarter. In the second quarter, current receipts and current expenditures accelerated (table 3).
Net borrowing was $450.5 billion in the second quarter, increasing $62.4 billion from $388.1 billion in the first quarter.
- Personal current taxes (line 3) turned up in the second quarter, increasing $23.3 billion after decreasing $3.5 billion in the first quarter, reflecting an upturn in personal income taxes.
- Taxes on production and imports (line 4) accelerated in the second quarter, increasing $25.1 billion after increasing $18.5 billion in the first quarter, reflecting an acceleration in sales taxes and severance taxes.
- Federal grants-in-aid (line 9) accelerated in the second quarter, increasing $39.0 billion after increasing $1.6 billion in the first quarter, reflecting an acceleration in Medicaid grants.
- Consumption expenditures (line 13) accelerated in the second quarter, increasing $127.0 billion after increasing $45.5 billion in the first quarter, reflecting an acceleration in spending on nondurable goods, specifically petroleum.
- Government social benefits (line 14) turned up in the second quarter, increasing $31.8 billion after decreasing $1.6 billion in the first quarter, reflecting an upturn in Medicaid spending.
- Capital transfer receipts (line 22) turned up in the second quarter, increasing $5.1 billion after decreasing $23.1 billion in the first quarter, reflecting a settlement payment received by the state of Maryland.
| Line | Level | Change from preceding quarter | ||||
|---|---|---|---|---|---|---|
| 2026 | 2025 | 2026 | ||||
| Q2 | Q3 | Q4 | Q1 | Q2 | ||
| 1 | Current receipts | 4,245.5 | 41.1 | 32.3 | 19.5 | 89.5 |
| 2 | Current tax receipts | 2,793.6 | 28.0 | 49.5 | 18.6 | 50.0 |
| 3 | Personal current taxes | 674.9 | 10.1 | 21.5 | −3.5 | 23.3 |
| 4 | Taxes on production and imports | 1,928.3 | 18.7 | 15.1 | 18.5 | 25.1 |
| 5 | Taxes on corporate income | 190.4 | −0.8 | 13.0 | 3.6 | 1.5 |
| 6 | Contributions for government social insurance | 31.4 | 0.2 | 0.2 | 1.3 | 0.7 |
| 7 | Income receipts on assets | 226.5 | 1.3 | −0.1 | −0.8 | −0.5 |
| 8 | Current transfer receipts | 1,253.7 | 15.0 | −14.8 | 3.6 | 41.1 |
| 9 | Federal grants-in-aid | 1,026.3 | 15.9 | −14.4 | 1.6 | 39.0 |
| 10 | Other | 227.4 | −1.0 | −0.4 | 2.0 | 2.1 |
| 11 | Current surplus of government enterprises | −59.7 | −3.3 | −2.4 | −3.4 | −1.7 |
| 12 | Current expenditures | 4,579.3 | 100.7 | 29.3 | 45.0 | 158.4 |
| 13 | Consumption expenditures | 2,982.6 | 40.7 | 18.7 | 45.5 | 127.0 |
| 14 | Government social benefits | 1,318.8 | 60.3 | 10.6 | −1.6 | 31.8 |
| 15 | Interest payments | 276.7 | −0.5 | 0.1 | 1.0 | −0.4 |
| 16 | Subsidies | 1.2 | 0.0 | 0.0 | 0.1 | 0.0 |
| 17 | Net state and local government saving | −333.8 | −59.4 | 2.9 | −25.5 | −68.9 |
| 18 | Social insurance funds | 2.8 | −0.6 | −0.4 | 0.9 | 0.4 |
| 19 | Other | −336.5 | −58.8 | 3.3 | −26.5 | −69.1 |
| Addenda: | ||||||
| 20 | Total receipts | 4,370.9 | 42.8 | 60.8 | −3.7 | 94.7 |
| 21 | Current receipts | 4,245.5 | 41.1 | 32.3 | 19.5 | 89.5 |
| 22 | Capital transfer receipts | 125.4 | 1.5 | 28.6 | −23.1 | 5.1 |
| 23 | Total expenditures | 4,821.4 | 104.7 | 32.4 | 51.5 | 157.0 |
| 24 | Current expenditures | 4,579.3 | 100.7 | 29.3 | 45.0 | 158.4 |
| 25 | Gross government investment | 675.5 | 10.2 | 8.8 | 10.8 | 9.0 |
| 26 | Capital transfer payments | 0.0 | 0.0 | 1.4 | −1.4 | 0.0 |
| 27 | Net purchases of nonproduced assets | 19.7 | 0.1 | 0.2 | 0.2 | 0.2 |
| 28 | Less: Consumption of fixed capital | 453.1 | 6.2 | 7.2 | 3.2 | 10.6 |
| 29 | Net lending or net borrowing (−) | −450.5 | −62.0 | 28.4 | −55.1 | −62.4 |
U.S. Bureau of Economic Analysis
Suggested citation
Adam J. DelGenio, “Government Receipts and Expenditures: Second Quarter 2026,” Survey of Current Business (October 15, 2026), https://doi.org/10.66137/ZMCY8439.
