The US federal government recorded a budget deficit of $432 billion in July 2026, up from a $291 billion shortfall in the same month a year earlier and surpassing expectations for a $346 billion gap.
Total government outlays rose to $766 billion from $630 billion in July 2025, driven primarily by Medicare expenditures of $174 billion. Social Security payments amounted to $141 billion, while net interest costs reached $104 billion and national defense spending totaled $91 billion.
On the revenue side, government receipts slipped to $334 billion from $338 billion a year earlier. Individual income taxes contributed $173 billion, and social insurance and retirement receipts came to $139 billion.
