Investing.com -- The U.S. government posted a $432.3 billion budget deficit in July, pushing the fiscal-year shortfall through the first 10 months to nearly $1.8 trillion, according to the Treasury Department's monthly statement.
The July deficit was significantly larger than the $291.1 billion shortfall recorded in the same month a year earlier, as government outlays surged while receipts remained broadly stable. The Treasury collected $334.0 billion in July, while spending reached $766.3 billion.
For the fiscal year through July, receipts totaled $4.49 trillion, up from $4.35 trillion in the comparable period of fiscal 2025. Outlays, however, rose to $6.28 trillion from $5.98 trillion, leaving the cumulative deficit at $1.799 trillion, compared with $1.629 trillion a year earlier.
Individual income taxes were the largest source of revenue, generating $2.37 trillion so far this fiscal year, while social insurance and retirement receipts contributed $1.52 trillion. Corporation income taxes brought in $292.9 billion and customs duties $154.5 billion.
Spending remained concentrated in major entitlement and government programs. Social Security outlays reached $1.38 trillion through July, followed by Medicare at $955 billion, net interest on the federal debt at $931 billion, health programs at $845 billion and national defense at $804 billion.
The Treasury said July is typically a deficit month because it has few major corporate or individual tax-payment deadlines. It also noted that several payments, including military compensation and retirement benefits, veterans' benefits, Supplemental Security Income and certain Medicare payments, were accelerated into July because Aug. 1 fell on a non-business day.
The government financed the fiscal-year deficit primarily through borrowing from the public, which reached $1.70 trillion through July. The Treasury also reduced operating cash by $14.3 billion and raised another $83.8 billion through other financing measures.
U.S. budget deficit widens to $1.8 trillion through July
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