Press Release
October 8, 2026
CBO: FY 2026 Budget Deficit Totaled $2 Trillion
The Congressional Budget Office (CBO) has released its final Monthly Budget Review for fiscal year (FY) 2026. In a new insight, Director of Fiscal Policy Jordan Haring walks through the details of the report.
Key points:
- CBO shows the federal budget deficit totaled $2.0 trillion during FY 2026 – $218 billion higher than the $1.8 trillion deficit recorded in FY 2025 and $140 billion above the $1.9 trillion deficit CBO projected in its latest baseline.
- The FY 2026 deficit was the net effect of $7.4 trillion of spending and $5.4 trillion of revenue collections.
- The $218 billion increase in the deficit can be explained by a $386 billion increase in spending that more than offset the $169 billion of higher revenue collections.
