CBO Estimates $409 Billion Deficit for First Month of Fiscal Year 2027

The United States borrowed $409 billion in the first month of Fiscal Year 2027, according to the latest Monthly Budget Review from the Congressional Budget Office.

The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget: 

We are just one month into the new fiscal year, and astonishingly we have already borrowed $409 billion. These monthly numbers from CBO come on the heels of the end of a Fiscal Year that was plagued with unfortunate fiscal milestones including the gross national debt reaching a whopping $40 trillion, debt held by the public surpassing our entire economy, and interest exceeding defense spending. Not to mention, Social Security is approaching insolvency in less than six years.

Clearly, Americans are feeling the effects of irresponsible budgeting, with affordability issues being exacerbated by high federal borrowing. Soon Congress will need to come together to resolve the government funding deadline as it is set to expire in early December. Rather than adding to the debt and continuing the same unsustainable path, lawmakers should use the lame-duck session to commit to no new borrowing and avoid any spending increases or tax cuts that are not offset.

Looking ahead, we should target meaningful deficit reduction by setting a goal of reducing deficits to 3% of the economy. We could get there with a bipartisan commission that puts all solutions on the table while seeking to avoid the impending insolvency of the Social Security retirement and Medicare hospital trust funds.

If today's deficit numbers make anything clear, it is that inaction is not an option. The alarm bells are ringing and Americans are struggling. It is up to lawmakers to work together to answer the call and put our nation on a sustainable economic path. 

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For more information, please contact Matt Klucher, Assistant Director for Media Relations, at klucher@crfb.org.