The Treasury Department reported a $432.2 billion deficit for July, reflecting $334 billion in receipts against $766.3 billion in outlays, bringing the fiscal 2026 deficit so far to nearly $1.8 trillion, up from $1.6 trillion at the same point last year. An economist noted it was the largest single-month deficit since March 2021, though some August payments were shifted earlier due to a calendar quirk.
Major July expenses included $174.3 billion for Medicare, $140.7 billion for Social Security, and $104.2 billion in net interest on the debt, which has totaled $931.4 billion so far this fiscal year as the national debt exceeds $39.8 trillion. Customs duties failed to generate net revenue for a third straight month, with $24.8 billion collected against $33.4 billion paid out in tariff refunds tied to the Supreme Court's ruling against the administration's tariff program.
The nonpartisan CBO projects a $2.1 trillion deficit for fiscal 2026, having lowered revenue projections by roughly $200 billion largely due to weaker-than-expected tariff collections.
The full dispatch is available from the source below.