November 10, 2026 - In fiscal year 2026, which ended on September 30, the federal budget deficit totaled $2.0 trillion—an increase of $217 billion (or 12 percent) from the deficit recorded in the previous year. Revenues and outlays increased from 2025 totals. Revenues rose by 3 percent, or $169 billion; increases in collections of individual income and payroll taxes were partially offset by declines in corporate income tax receipts and customs duties. Outlays grew by 6 percent, or $386 billion, with the greatest increases occurring for the largest mandatory spending programs, net interest on the public debt, and military activities of the Department of Defense. Those increases were partly offset by decreases recorded for the Environmental Protection Agency and the Department of Commerce, among others. The 2026 amounts reported here differ somewhat from amounts described in the Monthly Budget Review: September 2026 because they reflect data subsequently reported in the Monthly Treasury Statement for September 2026.
View Document
The federal deficit in 2026 was equal to 6.2 percent of the nation's gross domestic product (GDP), an increase from 5.8 percent of GDP in 2025. The 2026 deficit expressed as a percentage of GDP is greater than the 50-year average of 3.8 percent and has been matched or exceeded only eight times since 1946 (from 2009 through 2012 and in 2020, 2021, 2023, and 2024). Federal debt held by the public reached 100 percent of GDP in 2026, the highest percentage since 1946 and up from 99.0 percent at the end of fiscal year 2025.
The deficit in 2026 was $140 billion (or 8 percent) larger than the shortfall estimated in CBO's most recent baseline budget projections, which were issued in February 2026. Revenues were $193 billion (or 3 percent) less than CBO projected in that baseline, reflecting smaller-than-expected customs duties, which were partially offset by larger receipts from individual income taxes. Outlays were $53 billion (or 1 percent) less than CBO projected. Spending by the Department of Education accounted for the largest overestimate. Early in the next calendar year, CBO will publish updated budget and economic projections in The Budget and Economic Outlook: 2027 to 2037.
Source:Â Congressional Budget Office