CBO: U.S. Federal Deficit Reaches $1.8 Trillion in First 10 Months of Fiscal 2026
On August 10, 2026, the CBO reported a $1.8 trillion U.S. deficit for FY2026's first 10 months (Oct-Jul), $169 billion above the year-earlier level.
UNITED STATES,ECONOMY
Global N Press
8/10/20261 min read
On August 10, 2026, the U.S. Congressional Budget Office reported that the federal budget deficit for the first 10 months of fiscal year 2026—from October 2025 through July 2026—totaled $1.8 trillion, $169 billion higher than the deficit recorded during the same period in the previous fiscal year. Revenues increased by $139 billion, or 3 percent, while outlays rose by $308 billion, or 5 percent. Analysts attributed the deficit expansion to pressures on both the revenue and expenditure sides. On the revenue side, a Supreme Court ruling in February 2026 declared tariffs imposed under the International Emergency Economic Powers Act unlawful, requiring the federal government to refund collected duties and sharply reducing tariff revenues, while tax cuts enacted under the "Big Beautiful Bill" further squeezed fiscal receipts.
On the expenditure side, net interest on debt grew faster than any other category of federal spending, now ranking as the second-largest federal outlay after Social Security. Total federal debt has approached $40 trillion, with daily interest payments nearing $2 billion. The CBO projects that if current trends continue, economic growth will no longer cover the interest costs of debt expansion by fiscal year 2031. Analysts warned that U.S. fiscal sustainability is shifting from a long-term concern to an immediate risk, with shrinking fiscal space potentially suppressing economic growth momentum.
