The federal government’s tariff windfall is evaporating faster than expected, and the Congressional Budget Office says it’s blowing a $200 billion hole in this year’s budget.
CBO now projects the fiscal 2026 deficit will hit $2.1 trillion, according to the nonpartisan scorekeeper’s Monthly Budget Review released Monday—up from the $1.9 trillion the agency forecast in February, before the Supreme Court struck down President Trump’s signature tariff program.
