Key facts
- The U.S. federal budget deficit for July was a record $432 billion.
- Government outlays in July reached a record $766 billion.
- Tariff refunds contributed to negative customs receipts.
- The fiscal year-to-date deficit for 2026 has surpassed the full 2025 deficit.
- Calendar shifts in benefit payments inflated the July deficit.
The U.S. federal budget deficit for July surged to a record $432 billion, according to data released by the U.S. Treasury. This figure represents a significant increase from the previous year, partly due to calendar shifts in benefit payments that inflated outlays.
Unadjusted outlays for July reached a record $766 billion, a 22% increase from the prior year. A substantial portion of this increase, $99 billion, was attributed to the payment of August benefits in July because the current month began on a weekend. After accounting for these and other shifts, the adjusted July deficit stood at $333 billion, an 18% rise from the prior year.
Receipts for July were down 1% to $334 billion. Notably, net customs receipts were negative, impacted by tariff refunds totaling $33.38 billion for the month.
For the first ten months of fiscal year 2026, the unadjusted budget deficit totaled $1.799 trillion. This amount already exceeds the full fiscal year 2025 deficit of $1.775 trillion, with two months remaining in the current fiscal year.