Revenues to funds subject to the outlook (NGFO) are now forecasted to total $76.258 billion in 2025–27, $82.594 billion in 2027–29, and $94.121 billion in 2029–31. Compared to the June forecast, revenues are now estimated to be $22 million higher in 2025–27, $430 million higher in 2027–29, and $2.382 billion higher in 2029–31.

The increases to the 2027–29 and 2029–31 forecasts are due to an increased estimate of income tax revenues. Now, the Economic and Revenue Forecast Council is estimating that income tax revenues will be $3.503 billion in 2027–29 and $9.435 billion in 2029–31. Compared to the June forecast of income tax revenues, that is an increase of $805 million in 2027–29 and $2.536 billion in 2029–31.

Excluding income tax revenues, NGFO revenues in 2027–29 would be $79.091 billion (an increase of 3.7% over the forecast for 2025–27) and NGFO revenues in 2029–31 would be $84.686 billion (an increase of 7.1% over the forecast for 2027–29). As we’ve written, income tax revenue estimates are very uncertain, especially since we have no collections history yet.

Compared to the revenues assumed in the enacted 2026 supplemental budget, the September forecast is a reduction of $405 million in 2025–27 and a reduction of $20 million in 2027–29. (2029–31 is not yet part of the outlook period.) The gap between enacted appropriations and estimated revenues for 2025–27 is now $3.9 billion.