Photo: Andy Feliciotti, Unsplash
Photo: Andy Feliciotti, UnsplashThe wider October shortfall, driven partly by payment timing, adds pressure on Treasury debt management and fiscal policy.

The Congressional Budget Office estimated the federal government ran a deficit of $409 billion in October 2026, the first month of fiscal year 2027. Fortune+1 That shortfall was $125 billion larger than the deficit recorded in October 2025. Fortune+1 Revenues were $36 billion lower and outlays were $89 billion higher than in the same month last year. Fortune+1 The report attributed the larger deficit partly to shifts in the timing of federal payments that would otherwise have been made on November 1, which fell on a weekend in 2025 and 2026. Fortune+1
The deficit followed a summer of debt reshuffling by the Treasury, which Treasury Secretary Scott Bessent described as a Treasury twist. Fortune+1 Fiscal hawks have questioned whether these actions meaningfully improved the macroeconomic picture. Fortune+1
Photo: Andy Feliciotti, Unsplash
Photo: Heatmap News
Photo: Andy Feliciotti, Unsplash