October 9, 2026 - Congressional Budget Office officials report the federal budget deficit totaled $2.0 trillion in fiscal year 2026, CBO estimates, $218 billion more than the deficit recorded in fiscal year 2025. Although revenues rose by $169 billion (or 3 percent), outlays rose more—by an estimated $386 billion (or 6 percent).
Outlays increased for net interest on the debt, major benefit programs, defense, and education, among others. Those increases were partly offset by decreases recorded in other areas. Growth in revenues was driven by larger collections of individual income and payroll taxes.
Source: Congressional Budget Office
