The US budget, October 2026: a deficit of $404.1bn, interest $103.1bn
Fiscal 2027, october to october: a balance of −$404.1bn against −$284.4bn. Revenue $368.9bn (−8.8%), spending $773.0bn (+12.2%).
Put together automatically by hedger from the US Treasury and FRED data. It draws no conclusions and is not investment advice.
What's going on
- The deficit is $119.7bn larger than last year. Fiscal 2027, october to october: a balance of −$404.1bn against −$284.4bn. Revenue $368.9bn (−8.8%), spending $773.0bn (+12.2%).
- Interest on the debt is 13.3% of spending. Net interest $103.1bn, last year $90.9bn (+13.4%). That is 27.9% of revenue. Defense: $128.9bn.
- The debt rose $2.16tn in a year. That is $6.3bn a day. Held by the public $32.76tn, in government accounts $7.80tn. Debt to GDP 121.2%.
- 34.2% of marketable debt falls due within 12 months. $10.92tn of $31.89tn at Oct 31, 2026. The average rate on all the debt is 3.58%, a year ago 3.35%.
- Customs duties are 5.2% of revenue. Collected $19.2bn, last year $31.4bn (−38.9%).
- The largest foreign holder: Japan. Japan $1.07tn (−$115.6bn on the year), United Kingdom $1.01tn (+$108.2bn). All foreign holders $9.36tn, the Fed $4.78tn.
The US fiscal year starts on October 1. "This year" therefore runs from October 2026 to October 2026, "last year" is the same months a year before.
The same months in past years
Revenue
| Line | This year | Last year | Change | Share |
|---|---|---|---|---|
| Individual income taxes | $186.4bn | $217.0bn | −14.1% | 50.5% |
| Payroll taxes | $128.6bn | $123.9bn | +3.8% | 34.9% |
| Customs duties | $19.2bn | $31.4bn | −38.9% | 5.2% |
| Corporate income taxes | $18.0bn | $15.1bn | +19.2% | 4.9% |
| Excise taxes | $5.9bn | $6.0bn | −1.7% | 1.6% |
| Miscellaneous | $4.1bn | $3.5bn | +17.1% | 1.1% |
Spending
| Line | This year | Last year | Change | Share |
|---|---|---|---|---|
| Medicare | $170.0bn | $150.6bn | +12.9% | 22.0% |
| Social Security | $142.7bn | $134.1bn | +6.4% | 18.5% |
| National defense | $128.9bn | $99.9bn | +29.0% | 16.7% |
| Net interest | $103.1bn | $90.9bn | +13.4% | 13.3% |
| Health (Medicaid and others) | $93.5bn | $88.1bn | +6.1% | 12.1% |
| Income security | $58.5bn | $62.2bn | −5.9% | 7.6% |
| Veterans | $54.3bn | $49.7bn | +9.3% | 7.0% |
| Agriculture | $17.6bn | $4.8bn | +266.7% | 2.3% |
Interest on the debt
Who abroad holds US Treasuries
| Country | Now (August 2026) | A year ago |
|---|---|---|
| Japan | $1.07tn | $1.18tn |
| United Kingdom | $1.01tn | $901.3bn |
| China | $590.7bn | $699.7bn |
| Belgium | $490.5bn | $451.1bn |
| Canada | $464.6bn | $444.0bn |
| Cayman Islands | $463.0bn | $410.5bn |
Questions people ask
- What is the US budget deficit? Fiscal 2027, october to october: a balance of −$404.1bn, revenue $368.9bn, spending $773.0bn.
- How large is the US debt? At Nov 9, 2026: $40.56tn, of which held by the public $32.76tn.
- How much does the US pay in interest? Net interest of $103.1bn, 13.3% of spending.
- Who holds US Treasuries? The largest foreign holders: Japan $1.07tn, United Kingdom $1.01tn, China $590.7bn.
- When does the US fiscal year start? On October 1. Fiscal 2026 ran from October 2025 to September 2026.
More on hedger
The US budget and debt → · Rates and the Fed →
Source: US Treasury