Skip to Content

Filter by:

Washington Highlights

FY 2018 Budget Deficit Report Released, President Directs Cabinet to Consider 5% Cuts

October 26, 2018—U.S. Treasury Secretary Steven Mnuchin and Office of Management and Budget (OMB) Director Mick Mulvaney Oct. 15 announced that the deficit in fiscal year (FY) 2018 amounts to $779 billion, a $113 billion (17%) increase over FY 2017 and the highest deficit in six years.

According to the press statement, “as a percentage of GDP, the deficit was 3.9 percent, an increase from 3.5 percent in FY 2017 and above the average of 3.2 percent over the last 40 years.” The joint report also shows a 3.2% increase in outlays from FY 2017 to FY 2018.

Providing context to the analysis, Mulvaney touted the administration’s economic policies and added, “But this fiscal picture is a blunt warning to Congress of the dire consequences of irresponsible and unnecessary spending.”

The figures track closely with an October report from the Congressional Budget Office (CBO), estimating a $782 billion deficit in FY 2018. In its annual budget and economic outlook report published in April, CBO indicated that reduced revenues and increased spending associated with the Tax Cuts and Jobs Act (P.L. 115-97) and the Bipartisan Budget Act of 2018 (P.L. 115-123) would contribute to a higher deficit than originally projected.

Following the release of the October data from the Treasury Department, President Trump Oct. 17 called on Cabinet secretaries to cut 5% from their agencies’ budgets. The comments came just before a Cabinet meeting at the White House. No official guidance or additional details have been released on the suggested budget adjustments.


Tannaz Rasouli
Sr. Director, Public Policy & Strategic Outreach
Telephone: 202-828-0525

Christa Wagner, PhD
Senior Legislative Analyst
Telephone: 202-828-0595


envelope on a green background

Subscribe to Washington Highlights

RSS icon

Subscribe to RSS

Washington Highlights, a weekly electronic newsletter, features brief updates on the latest legislative and regulatory activities affecting medical schools and teaching hospitals.

Past Issues

For More Information

Jason Kleinman
Senior Legislative Analyst, Govt. Relations
Telephone: 202-903-0806