U.S. budget deficit stories

US budget deficit hits July record of $432 billion as tariff refunds drain revenue

The U.S. federal budget deficit reached a record $432 billion in July 2026, driven by increased spending and negative tariff revenues from refund payments. The fiscal year-to-date deficit has climbed to $1.799 trillion, already exceeding the full 2025 fiscal year total with two months remaining, as the Congressional Budget Office confirms tariffs are creating a $200 billion hole in the budget.