Uncle Sam’s income dipped and spending rose in October as the federal government started off fiscal 2027 just as it ended 2026 — deep in the red.
Spending totaled $773 billion for the month, while taxes and duties covered less than half of that, at just $369 billion.
The resulting deficit was $404 billion, far higher than the $284 billion recorded for the same month in 2025.
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October marks the start of the government’s fiscal year.
Spending rose sharply at several agencies.
The Defense Department spent $124 billion in October, up from just $96 billion at the same time in 2025.
Homeland Security’s spending rose from $5.5 billion to $9.1 billion.
Agriculture Department spending went from $17.3 billion to $31.1 billion.
And interest on the debt increased from $104.4 billion to $115.5 billion.
The government ended fiscal 2026 with a $2 trillion deficit, which was the worst non-pandemic year ever.
Revenue was up about 3% last year, but spending rose 6%, driving the deficit deeper.
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