U.S. budget deficit surged in July as federal spending accelerated.

Due to the accelerated growth of federal spending, the U.S. budget deficit in July reached a record for the same period, hitting $432 billion, which once again highlights the ongoing increase in government borrowing needs. Data released by the U.S. Treasury on Wednesday showed that the budget deficit for the first ten months of fiscal year 2026 has totaled $1.8 trillion. After adjusting for calendar factors, the deficit has expanded by 5% compared to the same period in fiscal year 2025.