US Congressional Budget Office estimates fiscal 2026 federal deficit at $2 trillion
In short
The US Congressional Budget Office estimates that the federal budget deficit for fiscal 2026 totalled $2 trillion, $218 billion more than in fiscal 2025, Chinese outlets reported. Revenue rose by $169 billion (3%) and spending by about $386 billion (6%), according to the estimate.
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The US Congressional Budget Office estimates that the federal government's budget deficit for fiscal 2026 came to $2 trillion, according to reports by CLS, Yicai and 36Kr. 36Kr, citing CCTV News, said the estimate was released on October 8 local time. CLS and 36Kr reported that the deficit was $218 billion higher than in fiscal 2025. [ 1 , 2 , 3 ]
According to the estimate, revenue rose by $169 billion, or 3%, during fiscal 2026, while spending rose by about $386 billion, or 6%. The increase in spending came mainly from net interest on debt, major benefit programmes, defence and education. Higher receipts from individual income taxes and payroll taxes accounted for most of the revenue growth. [ 1 , 3 ]
Why it matters
According to the estimate, the US deficit widened in fiscal 2026 as spending grew faster than revenue. Chinese business and tech outlets reported the figures on October 9.
Key facts
- The US Congressional Budget Office estimates the fiscal 2026 federal budget deficit at $2 trillion. [ 1 , 2 , 3 ]
- The fiscal 2026 deficit is $218 billion higher than the fiscal 2025 deficit, according to the estimate. [ 1 , 3 ]
- Revenue increased by $169 billion, or 3%, during fiscal 2026. [ 1 , 3 ]
- Spending increased by about $386 billion, or 6%. [ 1 , 3 ]
- Spending growth came mainly from net interest on debt, major benefit programmes, defence and education. [ 1 , 3 ]
- Revenue growth was driven mainly by higher individual income tax and payroll tax receipts. [ 1 , 3 ]
Confirmed by several sources
Still unclear
- Whether this is a preliminary estimate or a final figure. The reports describe the figure only as a Congressional Budget Office estimate and do not say whether it will be revised.
- The deficit is $218 billion higher than in fiscal 2025. Reported by a single source so far
- Revenue rose by $169 billion (3%) and spending by about $386 billion (6%). Reported by a single source so far
- Spending growth came mainly from net interest on debt, major benefit programmes, defence and education, while revenue growth came mainly from individual income and payroll taxes. Reported by a single source so far