Current Federal Debt and Deficit
Every month, the U.S. Treasury releases data on the federal budget, including the current deficit or surplus. The following reflects budget data for October, the first month of fiscal year (FY) 2027.
Current Federal Deficit
$404B
Federal Budget Deficit for October FY27
$284B
Federal Budget Deficit for October FY26
The federal government reported a $404 billion deficit in October FY27, up $120 billion from the $284 billion deficit recorded in October FY26. November 1 fell on a weekend in both 2025 and 2026, which shifted certain payments into October in both years. Without that timing shift, the deficit would have been $126 billion larger than the previous year.
Spending in October FY27 was $773 billion, $84 billion more than in October last year. Excluding the timing shift effects, spending was $89 billion more than in the same period last year.
Receipts are down by $35 billion in October FY27 compared to the previous year, driven by a $31 billion decrease in collections of individual income taxes and $12 billion decrease in customs duties.
Debt Held by the Public
$32.6T
Debt Held by the Public at the end of October FY27
$30.5T
Debt Held by the Public at the end of October FY26
The United States has begun a new fiscal year on the wrong foot, amassing the largest October deficit in our nation’s history. The debt held by the public is approaching its post-World War II high as a percentage of gross domestic product and is rising rapidly, driven by aging demographics, rising healthcare costs, inadequate revenues, and skyrocketing interest costs. The good news is that many solutions are available to improve our fiscal outlook and put our nation on a stronger path.