Interest Costs

Aerial view of a container port on a narrow island, with a red-hulled ship stacked with containers moored beside large blue cranes, rows of containers and trailers on the quay, and a city skyline and smaller islands in the background.

How Washington Ran a $404 Billion Deficit in the First Month of Fiscal 2027: Customs Down $12 Billion, Defense and Medicare Up $51 Billion

The federal government ran a deficit of $404.1 billion in October 2026, the first month of fiscal year 2027, against $284.3 billion a year earlier, according to the Monthly Treasury Statement. Receipts fell 8.8 per cent to $368.9 billion and outlays rose 12.2 per cent to $773.0 billion. One month is a small and noisy sample.

By Margaret Holloway 3 hours ago

Two men walk past the stone facade of the Treasury Department building in Washington, with 'The Department of the Treasury' carved above three doors and seals mounted between them.

The Numbers

Washington Paid $709 Billion of Interest This Year, Almost as Much as It Sent the States for Medicaid

The Treasury paid $709.3 billion of interest on its securities in the fiscal year that ended on Wednesday, according to its daily cash statement, up 16 per cent from a year earlier and more than twice the level of 2022. Medicaid grants to the states came to $721.4 billion. Four years ago interest was about half of Medicaid. The average rate on the debt is still below 3.5 per cent, while new ten-year debt costs 5.3.

By Daniel Okafor October 4, 2026

Tagged stories

How Washington Ran a $404 Billion Deficit in the First Month of Fiscal 2027: Customs Down $12 Billion, Defense and Medicare Up $51 Billion

Washington Paid $709 Billion of Interest This Year, Almost as Much as It Sent the States for Medicaid