The United States government has kicked off the start of fiscal 2026 with a deficit of US$284 billion in October, according to the Treasury Department.
This October’s deficit was likely impacted by the 43-day federal government shutdown, which also delayed the release of the results, and a reflection of record tariff revenues being offset by a shift of some November benefit payments into last month’s data.
The deficit was up 10% from the $257 billion deficit posted at the same time last year, largely due to the shift of around $105 billion worth of November benefit outlays for some military and healthcare programs into October.
Adjusting for the shifts, the deficit would have been around $180 billion and a 29% reduction from the adjusted October 2024 deficit of $252 billion.
Outlays from October, including November benefit payments, were up 18% from last year to $689 billion.
Net customs duties were one of the biggest revenue drivers, due to new tariffs imposed by President Donald Trump, reaching a new all-time monthly record of $31.4 billion.
This beat the previous record of $29.7 billion in September and is four times the $7.3 billion recorded at the same time last year.
Overall, government revenues increased 24% year-over-year to $404 billion in October, while spending rose 18% $689 billion.
The deficit rose 2% annually to $1.775 trillion in the 2025 fiscal year.
