The federal shortfall rose 42.1% from a year earlier as October revenue fell and government spending increased.
Key takeaways
The federal budget deficit reached $404.1 billion in October, up 42.1% year over year.
October revenue fell 8.8% to $368.9 billion, while spending rose 12.2% to $773 billion.
The U.S. federal budget deficit reached $404.1 billion in October, the first month of fiscal 2027, according to a Treasury Department report. The shortfall was 42.1% higher than the $284.3 billion recorded in the same month of fiscal 2026.
Federal revenue fell 8.8% from a year earlier to $368.9 billion. Spending rose 12.2% to $773 billion.
For fiscal 2026, the deficit increased 12% from the previous year to $1.99 trillion, the reports said.
