US Federal Budget Deficit Jumps to $432 Billion in July, Reaching Record for the Month

The U.S. federal budget deficit for July surged to $432 billion, marking a record for the month, driven by increased outlays and negative tariff revenues. This pushed the fiscal year-to-date deficit for 2026 to $1.799 trillion, surpassing the entire deficit of the previous fiscal year with two months remaining. The unadjusted outlays for July were also a record at $766 billion, partly inflated by calendar shifts in benefit payments.