US July deficit tops $432 billion as outlays grow, tariff receipts stay negative
Tariff refunds and weaker customs receipts pushed the shortfall higher, with CBO saying the 2026 deficit will be about $200 billion above its February estimate.
- On Wednesday, the Congressional Budget Office raised its 2026 deficit forecast to $2.1 trillion, roughly $200 billion above its February projection, citing weaker-than-expected tariff and customs collections as the primary driver.
- After the Supreme Court invalidated IEEPA tariff authority in February, the federal government refunded about $100 billion of $150 billion collected, shifting remaining duties to Section 122 and Section 301 authorities.
- July spending reached $766 billion against $334 billion in revenue, while debt servicing is on track to exceed $1 trillion this year. Medicare spending and roughly $37.5 billion in war costs with Iran compounded the shortfall.
- The deficit now equals about 6.6% of GDP, more than double Treasury Secretary Scott Bessent's 3% goal. Economist Alex Durante of the Tax Foundation said tariffs are "an unreliable long-term revenue source."
- Section 122 and Section 301 tariff authorities now face ongoing court scrutiny, creating legal uncertainty for future revenue. Bessent argued administration policies will drive "trillions in new investment," yet analysts remain skeptical about offsetting structural losses.
51 Articles
51 Articles
U.S. Budget Deficits Just Surged to $432.3 billion in July While Trump Weighs Brand-New Tax Cuts
Washington is floating brand-new tax cuts at the exact moment the federal deficit is blowing past levels not seen since the pandemic, and bond markets are already reacting. Here is what the latest Treasury numbers reveal about where fiscal policy could push interest rates next.
U.S. ends July with $432.2 billion mothly deficit, nearly $1.8 trillion deficit for fiscal year | Northwest Arkansas Democrat-Gazette
WASHINGTON -- The United States' budget deficit for the current fiscal year is around $1.8 trillion, according to new data published Wednesday.
U.S. Deficit Hits $1.8 Trillion With Months to Go as Spending Surges and Tariff Refunds Pile Up
The U.S. Treasury Department dropped fresh numbers Wednesday that paint a stark picture. The federal budget deficit swelled to $1.799 trillion through the first 10 months of fiscal 2026. That already tops the entire shortfall for fiscal 2025. And two months remain in the fiscal year. July alone delivered a $432 billion gap. It marks the largest monthly deficit since the height of the COVID crisis in March 2021. Outlays jumped. Tariff-related rec…
US budget deficit hits historic high of $432 billion in JulyThe US federal budget deficit hit a historic high of $432 billion in July due to rising spending, including on Medicare. In the first 10 months of fiscal year 2026, the deficit was $1.8 trillion, and debt payments rose 15%.
MAGA just realized the ‘big problem' with Trump’s budget
On Wednesday, following news that the U.S. budget deficit has soared under President Donald Trump, surging to its highest level in over five years, MAGA economic analysts are suddenly realizing there is a “big problem.”“In the month of July, the US Government collected $334 Billion,” posted Geiger Capital, a pseudonym account for a popular conservative market analyst who voted for Trump in 2024. “Just one problem… They spent $766 Billion. A $432…
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