The U.S. budget deficit hit a record for July, with interest payments for the current fiscal year already surpassing $1 trillion.

Against the backdrop of accelerating U.S. federal spending expansion paired with declining revenues, America’s fiscal situation continues to deteriorate, with debt interest spending exceeding $1 trillion cumulatively so far this fiscal year. Data released by the U.S. Treasury Department on Wednesday shows the July budget deficit hit $432 billion, the highest level for the same period in history, driven primarily by sharp increases in federal Medicare spending and rising public debt interest costs. Over the first 10 months of fiscal 2026, the cumulative budget deficit has reached $1.8 trillion. Adjusted for calendar factors, the deficit is 5% larger than the same period in fiscal 2025, highlighting the government’s sustained rising borrowing needs. Meanwhile, following the Supreme Court’s ruling invalidating most of former President Trump’s additional tariff measures, ongoing tariff refunds have also weighed on fiscal revenues, further amplifying deficit pressures.