The federal budget deficit totaled $1.2 trillion in the first eight months of fiscal year 2026, CBO estimates. That amount is $116 billion less than the deficit recorded during the same period last fiscal year.
The federal budget deficit totaled $1.2 trillion in the first eight months of fiscal year 2026, the Congressional Budget Office estimates. That amount is $116 billion less than the deficit recorded during the same period last fiscal year. Revenues rose by $174 billion (or 5 percent), and outlays increased by $57 billion (or 1 percent).
That comparison is affected by shifts in the timing of certain payments. Payments that otherwise would have been due on June 1, 2025, which fell on a weekend, were shifted into May of that year. If not for that shift, the deficit through May of fiscal year 2026 would have been $19 billion smaller than the shortfall for the same period in fiscal year 2025.
