US Estimates 2026 Fiscal Year Federal Budget Deficit at $2 Trillion

On October 8, the US Congressional Budget Office estimated that the federal budget deficit for fiscal year 2026 will total $2 trillion, an increase of $218 billion from fiscal year 2025. The estimate projects revenue increases of $169 billion (a 3% rise) and spending increases of approximately $386 billion (a 6% rise) during fiscal year 2026. Spending growth is primarily driven by net interest on the debt, major entitlement programs, defense, and education; revenue growth is mainly propelled by higher individual income tax and payroll tax receipts. (CCTV News)