On Oct. 8 the Congressional Budget Office estimated the US federal budget
deficit for FY2026 at $2.0 trillion, $218 billion above FY2025. The CBO projects
revenues to rise $169 billion (3%) and outlays to increase about $386 billion
(6%). Spending growth is concentrated in net interest on the debt, major
entitlement programs, defense and education; revenue gains are driven mainly by
higher individual income and payroll tax receipts.