The U.S. federal budget deficit rose to a record $432 billion in July due to accelerating government spending. This is evidenced by data from the U.S. Treasury Department, Bloomberg reports, according to UNN.
Details
According to the department, during the first 10 months of fiscal year 2026, the U.S. budget deficit reached $1.8 trillion. After adjusting for calendar differences, this figure is approximately 5% higher than the deficit for the same period in 2025.
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The July deficit was the largest for that month in the entire history of records. At the same time, the result was affected by a significant increase in Medicare spending, which nominally rose by $76 billion compared with July last year. After calendar adjustment, the increase was approximately $11 billion.
Debt-servicing costs continue to rise
One of the main factors behind the deficit remains interest payments on the national debt. In July, they were $26 billion higher than a year earlier, and during the first 10 months of the fiscal year they reached $1.17 trillion — up 15%.
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Total U.S. spending in July, after adjustment, increased by $37 billion compared with the same month in 2025. At the same time, revenue fell by $12 billion.
During the first 10 months of the fiscal year, adjusted government spending increased by 4%, while revenue rose by 3%. The results indicate a further increase in the United States' need for government borrowing.