
news report
CBO Says the 2026 Defense Request Reached $961 Billion
The request included $113 billion from the 2025 reconciliation law, and CBO says the funding mix makes enduring costs harder to project.
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The request included $113 billion from the 2025 reconciliation law, and CBO says the funding mix makes enduring costs harder to project.

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The budget method projects $15.3 billion in lifetime savings, while a fair-value method that accounts for market risk projects a $51.9 billion cost.

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Revenues rose 4% in the first nine months of fiscal 2026, but a 3% increase in outlays left the cumulative deficit $35 billion above the prior-year period.

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Over 2027 through 2036, the request would add $2.4 trillion in defense discretionary outlays and cut $2.6 trillion in nondefense discretionary spending.

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The agency compared a $30.3 trillion projected OASI shortfall with $55 trillion in top-1% wealth, warning that design and behavior would sharply reduce collections.

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The office expects the ratio of people ages 25–64 to those 65 and older to fall from 2.7 to 2.2 over three decades.

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The shortfall for the first 10 months of fiscal 2026 was $169 billion larger than a year earlier as outlays grew faster than revenues.

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CBO says highway, aviation, tobacco and alcohol, and stock-buyback taxes produced 88% of 2025 receipts.

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CBO expects annual support to reach 8.4% of GDP by 2036 while the uninsured population rises from 30 million to 37 million.

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The bill would reduce budget-resolution levels for long-unauthorized programs, but CBO says appropriations decisions still control actual spending.