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U.S. budget deficit surged to a July record as tariff refunds drag on revenues

The 10-month fiscal 2026 deficit has already surpassed the full-year 2025 shortfall, with 2 months still remaining

Chip Somodevilla/Getty Images

The U.S. federal government posted a budget deficit of $432.3 billion in July, a record for that month, as outlays climbed and tariff refunds pushed customs revenues into negative territory for the third consecutive month, the Treasury Department said Wednesday.

Compared with July a year earlier, the gap expanded by $141 billion — a 48% increase — making it the biggest monthly shortfall recorded since March 2021, according to Reuters. July has recorded a deficit in 70 of the 72 fiscal years, since there are typically no........

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