US October fiscal deficit $404 billion... largest October on record

The U.S. federal government posted a $404 billion budget deficit in October 2026, the first month of fiscal year 2027 and the largest October shortfall on record, according to Treasury data. The gap widened by $120 billion, or 42%, from the same month a year earlier, as revenues of $369 billion fell far short of $773 billion in spending. The Peterson Foundation's tally matched the Treasury figure, while the Congressional Budget Office had projected a slightly larger $409 billion deficit. The record October gap underscores persistent structural borrowing as outlays outpace receipts. Watch next for whether the pace of deficit growth carries into November and how it shapes Treasury issuance and fiscal negotiations.