The Treasury Budget for July 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.
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.