Stock Market Update
12-Aug-26 14:30 ET
U.S. Budget Deficit Surges 48% in July to $432 Billion
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The Treasury Budget for July showed a deficit of $432.3 billion compared to a deficit of $291.1 billion in the same period a year ago.
The July deficit resulted from outlays ($766.3 billion) exceeding receipts ($334.0 billion). The Treasury Budget data are not seasonally adjusted so the July deficit cannot be compared to the June deficit of $120.3 bln.
In short, the U.S. budget deficit surged +48% year over year in July, the largest monthly shortfall since March 2021, driven by rising Medicare costs and interest payments on the national debt. The fiscal-year deficit has now reached nearly $1.8 trillion, surpassing the comparable period in 2025.
