Deficit will be $200B more than initially anticipated: CBO projection
Tariff revenue is running about $250 billion below earlier expectations as higher mandatory spending and interest costs widen the gap, the CBO said.
- The Treasury Department reported that the federal deficit reached nearly $1.8 trillion during the first 10 months of the fiscal year, with The July shortfall totaling $432.3 billion.
- Mandatory expenses like Medicare and Net interest drove the spending surge, with Medicare expenses reaching $955 billion for the fiscal year and Net interest payments totaling $931 billion.
- Tariff refunds mandated by the Supreme Court cost the budget $33 billion, while an additional $99 billion hit occurred because the first of the month was a nonbusiness day, accelerating Supplemental Security payments.
- Financing costs for the full year rank behind only Social Security and other entitlements as a government expense, with the government having paid $1.17 trillion in interest on the $39.9 trillion national Debt.
- President Donald Trump previously pressed the Federal Reserve to lower rates, though expectations regarding the Fed shifted after Kevin Warsh took over as chairman.
31 Articles
31 Articles
Montana Standard
Republicans have supercharged deficits. For what?
Faced with soaring deficits, an aging population, a teetering pension system, unsustainable healthcare obligations, $1 trillion in annual interest costs, rising long-term bond yields and net public debt at around 100% of gross domestic product, what’s a country to do?
The total deficit in the first 10 months of the fiscal year is close to 1,800 billion
CBO Raises 2026 Federal Deficit Forecast to $2.1 Trillion
WASHINGTON, D.C. — The Congressional Budget Office now projects the federal deficit will reach $2.1 trillion in fiscal 2026, roughly $200 billion more than it estimated in February. The largest revision came from weaker-than-expected tariff revenue. After the Supreme Court struck down tariffs imposed under emergency powers, the government refunded about $100 billion of the duties it had collected, while newer tariffs have generated less revenue …
Deficit will be $200B more than initially anticipated: CBO projection
The fiscal year deficit for the federal government will be $200 billion more than the Congressional Budget Office (CBO) initially projected, the federal agency revealed Monday. In its monthly budget review, the CBO projected the fiscal 2026 federal deficit will be $2.1 trillion. In February, it projected the deficit would be $1.9 trillion. The change…
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