The US budget deficit for the month jumped almost 15 times

The US federal budget deficit in October 2026 increased almost 15 times compared to September - from $ 27 billion to $ 404 billion. The indicator became a record for October, reports Reuters, citing data from the US Treasury.

Compared to October last year, the deficit increased by $120 billion, or 42%. The growth is associated with reduced budget revenues and increased government spending.

Federal budget revenues in October amounted to $ 369 billion, a decrease of $ 35 billion, or 9%, in annual terms. In particular, net revenues from customs duties fell by 39% – from $31.3 billion to $19.2 billion. In October 2025, revenues from duties imposed by President Donald Trump reached a maximum.

Revenue from personal income taxes that are not withheld by employers fell by $29 billion, or 36%, to $51 billion. A year earlier, the figure was higher due to the tax payments of California residents, who were extended deadlines for filing returns after large-scale wildfires in early 2025.

Budget spending, by contrast, rose by $84 billion, or 12%, to a record $773 billion for October.

One of the reasons was an increase in the Department of Agriculture spending of $14 billion, or 80%, due to payments to farmers. Military spending increased by $28 billion, or 30%. In particular, this is due to the transfer of funds to military trust funds, which was postponed due to last year’s shutdown of the US government.

In addition, gross interest payments on government debt increased by $11 billion, or 11 percent, to $115 billion.

Taking into account the calendar adjustments associated with the postponement of social benefits for November to October, the deficit would be $ 285 billion. This is $94 billion, or 49%, more than in the same period last year.

October was the first month of fiscal year 2027 in the United States, which began on October 1, 2026. At the end of the previous fiscal year, the US budget deficit reached almost $2 trillion, the highest level in five years.

U.S. Treasury Secretary Scott Bessent has previously set a goal of reducing the budget deficit to 3% of GDP. However, at the end of fiscal year 2026, the indicator was estimated at 6.2% of GDP against 5.8% a year earlier.

In May, the US national debt exceeded the volume of the US economy, reaching $31.27 trillion for the first time since 1946. In early 2026, the independent Congressional Budget Office published a 10-year budget and economic forecast, according to which by 2030 the United States will break the postwar record, reaching 108% of the national debt. Also, according to forecasts, the share of public debt in GDP will reach 120% in 10 years.

Before that, former Treasury Secretary and Federal Reserve Chairman Janet Yellen said that Trump’s aggressive campaign to lower interest rates to reduce the cost of the national debt is the rhetoric of the banana republic.