The Congressional Budget Office projects that the U.S. budget deficit will increase to approximately $1.853 trillion in fiscal year 2026, compared to an estimated $1.775 trillion in 2025.
The agency said in a report today that this year’s projected deficit is equivalent to about 5.8% of gross domestic product, will average 6.1% over the next 10 years and rise to 6.7% by 2036.
additional income
The projected deficit is about $100 billion higher than the January 2025 forecast, according to the report. The agency also raised its forecast for the cumulative deficit from 2026 to 2035 by about $1.4 trillion. This is due to tax cuts under President Donald Trump’s administration.
The agency added that, considering the economic impact and lower interest payments, the additional revenue from President Trump’s tariffs would help reduce the deficit by $3 trillion over 10 years.
The Congressional Budget Office projects that the U.S. budget deficit will increase to approximately $1.853 trillion in fiscal year 2026, compared to an estimated $1.775 trillion deficit in 2025.
In today’s report, the agency said the budget deficit is expected to amount to about 5.8% of gross domestic product this fiscal year, average 6.1% over the next 10 years, and rise to 6.7% by 2036.
additional revenue
The deficit forecast is about $100 billion higher than the January 2025 estimate, according to the report, and the bureau raised its projected cumulative deficit from 2026 to 2035 by about $1.4 trillion due to tax cuts implemented by President Donald Trump’s administration.
The agency added that the additional revenue from President Trump’s tariffs will help reduce the deficit by $3 trillion over the next 10 years, taking into account economic effects and lower interest payments.
