U.S. posts $284 billion October deficit amid record tariff revenue
The U.S. government recorded a $284 billion budget deficit for October, the first month of fiscal year 2026, according to a Treasury Department report released Tuesday.
The deficit was 10% higher than the $257 billion deficit posted in October 2024. The report was delayed due to the recent 43-day federal government shutdown, which also impacted the timing of certain payments, including government employee salaries.
Treasury officials noted that the October deficit was inflated by approximately $105 billion in November benefit payments for military and healthcare programs that were shifted into October. Without this timing shift, the October deficit would have been around $180 billion, representing a 29% reduction from the adjusted October 2024 deficit of $252 billion.
Total government outlays for October reached $689 billion, an 18% increase from the $584 billion spent in October 2024. While the shutdown delayed some payments, Treasury officials estimated these delays reduced total outlays by less than 5%. Federal law requires all unpaid salaries and obligations during government shutdowns to be paid in full once funding is restored.
Government receipts for October totaled $404 billion, marking a record for the month and representing a 24% increase from the $327 billion collected in October 2024.
A significant contributor to the increased revenue was net customs duties, which reached an all-time monthly record of $31.4 billion in October. This represents a substantial increase from $29.7 billion in September and $7.3 billion in October 2024.
Source : Investing.com
