Treasury Statement: October Federal Deficit Hits a Record $404 Billion as Receipts Fall 9% and Outlays Rise 12%
The U.S. Department of the Treasury released its Monthly Treasury Statement on November 12: in October 2026, the first month of fiscal year 2027, the federal budget deficit was $404 billion, a record for the month, up $120 billion, or 42 percent, from $284 billion in October 2025.
On the receipts side, federal receipts in October totaled $369 billion, down $35 billion, or 9 percent, from a year earlier. The Treasury said the decline partly reflected lower net customs duty collections. Individual non-withheld taxes were $29 billion, or 36 percent, lower than a year ago, when the figure had been swelled by delayed tax filing deadlines for Californians affected by the 2025 wildfires.
On the outlays side, federal outlays in October came to a record $773 billion for the month, up $84 billion, or 12 percent, from a year earlier. Department of Agriculture spending rose $14 billion, or 80 percent, on farm relief payments, and military spending rose $28 billion, or 30 percent, including an October payment to military trust funds that had been delayed by last year's government shutdown, along with increases across operations, maintenance and procurement. Gross interest on the federal debt rose $11 billion, or 11 percent, to $115 billion.
The Treasury also gave a calendar-adjusted figure: because November benefit payments were shifted into October in both fiscal years, the adjusted October deficit was $285 billion, an increase of $94 billion, or 49 percent, from the year-ago period.
The Congressional Budget Office (CBO) had estimated the October deficit at $409 billion on November 9; the Treasury's final figure of $404 billion is $5 billion lower. (Source: U.S. Department of the Treasury)
Source: U.S. Department of the Treasury
Published by GSM · USA (original Chinese edition)
Photo: 图：美国财政部大楼正面（华盛顿，资料图）。维基共享资源，CC BY-SA 4.0。 / Photo: Front of the U.S. Treasury Building in Washington (file photo). Via Wikimedia Commons, CC BY-SA 4.0.
