CBO schedules Aug. 10 budget review as federal deficit reaches $1.2 trillion
The federal deficit reached an estimated $1.2 trillion during the first eight months of fiscal year 2026, according to the Congressional Budget Office, which has scheduled its next monthly budget review for Aug. 10.
The figures provide the latest official snapshot of federal revenues, spending and borrowing as Congress and the administration prepare for additional fiscal-year spending decisions. The June 8 report covered the period through May.
Deficit was lower than a year earlier
CBO said the deficit through the first eight months of fiscal year 2026 was $116 billion lower than the deficit recorded during the comparable period in fiscal year 2025. The agency described the figures as estimates, meaning they may change as additional Treasury data become available or as the numbers are revised.
The year-over-year comparison does not provide a complete picture of the full fiscal year. The reported $1.2 trillion total covers only the first eight months of fiscal year 2026 and should not be treated as the final deficit for the year.
CBO also said that shifts in the timing of federal payments affected the comparison with the same period in fiscal year 2025. That qualification means the difference between the two periods cannot be attributed solely to changes in federal policy based on the information in the report.
Revenue growth outpaced spending growth
Federal revenues increased by $174 billion, or 5%, over the comparable period in fiscal year 2025, CBO reported. Revenues include money collected by the federal government and are one of the two principal components used to calculate the deficit, alongside outlays.
Federal outlays increased by $57 billion, or 1%, during the same comparison period. Although both revenues and outlays rose, the reported increase in revenues was larger in dollar terms than the increase in outlays. The resulting deficit remained $1.2 trillion through the first eight months of the fiscal year.
CBO’s monthly budget reviews track federal receipts, outlays and the deficit or surplus using information from the Treasury Department. The reviews are intended to provide periodic updates rather than a final accounting of the fiscal year.
Next review is scheduled for Aug. 10
CBO listed Aug. 10, 2026, as the release date for its Monthly Budget Review covering July 2026. That report will extend the available fiscal-year data beyond the May figures included in the June 8 review.
The scheduled release date does not guarantee a particular deficit result. The July review could reflect additional Treasury information, revisions to earlier estimates or further effects from payment timing. As of Aug. 6, the July review had not yet been released, according to the CBO schedule included in the approved record.
For lawmakers and administration officials, the next report will offer a newer baseline for evaluating federal receipts and outlays as fiscal-year spending decisions continue. For the public, the figures show the scale of the government’s cumulative shortfall so far in fiscal year 2026, while the estimate and payment-timing caveats underscore why the total may change.
The current report does not identify a single cause for the deficit’s year-over-year movement. It establishes the latest official totals and sets the next update point: CBO’s July review on Aug. 10.
Sources
- Monthly Budget Review: May 2026, Congressional Budget Office
- Press Center, Congressional Budget Office
- Monthly Budget Review, Congressional Budget Office
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