The U.S. fiscal deficit reached $404 billion in the first month of fiscal year 2027, a 42% increase year-on-year.

According to data from the U.S. Treasury Department, the U.S. fiscal deficit reached $404 billion in the first month of fiscal year 2027 (October 2026), an increase of 42% year-on-year. Government spending that month increased by 12% year-on-year to $773 billion, while tax revenue decreased by 9% to $369 billion, of which tariff revenue decreased by approximately 39% year-on-year to $19.2 billion. Increased military spending, healthcare expenditures, and national debt interest payments have driven up government spending, while higher-than-expected tariffs and corporate tax refunds have dragged down tax revenue. The U.S. Treasury Department projects the fiscal deficit will rise slightly to approximately $2.2 trillion this fiscal year. The previous fiscal year's deficit was $1.99 trillion, approximately 6% of GDP.