The US federal budget deficit surged to a record $432 billion in July, pushing the fiscal 2026 shortfall above the entire deficit recorded in fiscal 2025, as higher government spending and weaker tariff revenues put further pressure on the nation’s finances, Reuters reported.
According to the U.S. Treasury, the July deficit was 48% higher than the $291 billion recorded in the same month last year and marked the largest monthly shortfall since March 2021. It was also the third-largest monthly deficit on record, behind the pandemic-era gaps recorded in April and June 2020, Reuters said.
