US Federal Deficit Starts FY2027 at $404.1 Billion in October, Down 80 Percent From a Year Earlier
The federal government ran a deficit of $404.1 billion in October, the first month of FY2027, down 80 percent from $1.99 trillion a year earlier, according to the Monthly Treasury Statement for October 2026. Receipts came to $368.9 billion, down 93 percent, and outlays to $773 billion, down 90 percent.
The Year So Far
| FY2027 to date | FY2027 | FY2026 | Change |
|---|---|---|---|
| Receipts | $368.9 billion | $5.4 trillion | down 93 percent |
| Outlays | $773 billion | $7.4 trillion | down 90 percent |
| Deficit | $404.1 billion | $1.99 trillion | down 80 percent |
Where the Money Came From
The biggest sources of revenue were individual income taxes at $186.4 billion, payroll and other social insurance taxes at $131.5 billion and customs duties at $19.2 billion.
The largest changes from a year earlier: individual income taxes down 14 percent to $186.4 billion; customs duties down 39 percent to $19.2 billion; social insurance taxes up 3 percent to $131.5 billion.
Where It Went
| Function | FY2027 to date | A year earlier | Change |
|---|---|---|---|
| Medicare | $170 billion | $150.6 billion | up 13 percent |
| Social Security | $142.7 billion | $134.1 billion | up 6 percent |
| National Defense | $128.9 billion | $99.9 billion | up 29 percent |
| Net Interest | $103.1 billion | $90.9 billion | up 13 percent |
| Health | $93.5 billion | $88.1 billion | up 6 percent |
| Income Security | $58.5 billion | $62.2 billion | down 6 percent |
| Veterans Benefits and Services | $54.3 billion | $49.7 billion | up 9 percent |
| Agriculture | $17.6 billion | $4.8 billion | up 267 percent |
Net interest on the debt cost $103.1 billion, up 13 percent from a year earlier and less than the $128.9 billion spent on national defense. Interest took about 13 cents of every dollar the government spent.
The Debt
Total public debt outstanding stood at $40.52 trillion on October 30, 2026, up $352.7 billion since the fiscal year began. Debt held by the public was $32.74 trillion. By November 10, 2026 the total was $40.58 trillion.
The average interest rate on marketable Treasury debt was 3.570 percent at the end of October, against 3.393 percent a year earlier. Treasury bills averaged 4.014 percent.
Where the debt is headed over the next 30 years is in CBO Projects US Debt at 120% of GDP by 2036 and 175% by 2056.
Figures are from the Treasury’s Monthly Treasury Statement for October 2026 and its debt and interest rate data on Fiscal Data.