The US government posted a $432 billion budget deficit in July 2026, widening from a $291 billion shortfall a year earlier and exceeding forecasts for a $346 billion gap. Government outlays rose to $766 billion from $630 billion in July 2025, led by Medicare spending of $174 billion. Social Security costs reached $141 billion, while net interest accounted for $104 billion and national defense for $91 billion. Meanwhile, government receipts fell to $334 billion from $338 billion a year earlier, with individual income taxes contributing $173 billion and social insurance and retirement receipts totaling $139 billion.