US Budget Deficit Hits Record $404 Billion at Start of Fiscal Year 2027

The US federal budget deficit reached a record $404 billion in October, marking a 42% increase compared with the same month last year, according to data released by the US Treasury Department.

The rise was driven by a 9% decline in revenues to $369 billion, while government spending climbed to a record $773 billion, fueled by higher agricultural and military expenditures and increased federal debt interest payments.

After adjusting for shifts in the timing of certain benefit payments, the deficit stood at $285 billion, up 49% year over year.