The U.S. posted a $432.3 billion budget deficit in July, up about 48% from a year earlier and the widest monthly gap since March 2021, as Medicare spending jumped, debt-service costs climbed and tariff refunds added to pressure on federal finances. The cumulative deficit for the first 10 months of fiscal 2026 approached $1.8 trillion, above $1.63 trillion a year earlier, with receipts rising to $4.49 trillion and outlays increasing more sharply to $6.28 trillion. July Medicare spending surged to $174 billion after payment timing shifts pulled roughly $99 billion of military pay, veterans' benefits, Supplemental Security Income and some Medicare payments into the month, while gross interest costs for the fiscal year reached $1.17 trillion and net interest totaled $931 billion as national debt neared $40 trillion.