The federal budget deficit totaled $1.248 trillion during the first eight months of fiscal year 2026, $116 billion lower than the same period a year earlier, according to a Congressional Budget Office report released Monday. Revenues rose 5% to $3.655 trillion while outlays increased 1% to $4.903 trillion. Separately, the federal government recorded a $294 billion deficit in May, as higher interest costs and mandatory spending offset stronger revenue collections earlier in the fiscal year.
- Fiscal 2026 year-to-date deficit reached $1.248 trillion through May.
- Federal revenues increased by $174 billion, or 5%, from the prior year period.
- Customs duties rose $107 billion, or 132%, largely due to tariff-related collections.
- Corporate income tax receipts fell $88 billion, or 30%.
- Net interest payments on federal debt increased $68 billion, or 10%, year-to-date.
- May alone recorded a $294 billion federal budget deficit.
- May net interest costs rose $28 billion, or 32%, from the prior year period.
- Defense spending increased $24 billion year-to-date, while Social Security, Medicare, and Medicaid spending also rose.
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Editor’s Note: This is a developing story. This article may be updated as more details become available.
