The U.S. government recorded a $167 billion budget deficit in August 2026, 52% below a year earlier, as benefit-payment timing reduced reported outlays and receipts increased. Because Aug. 1 fell on a Saturday, roughly $81 billion in Medicare and Social Security payments were made in July, contributing to a 24% decline in unadjusted outlays to $527 billion. After adjusting for the timing shift, the August deficit widened by $7 billion from a year earlier to $248 billion. Receipts rose 5% to $360 billion, while net customs receipts increased to $12.84 billion as tariff refunds fell to $10.54 billion from $33.38 billion in July. The fiscal 2026 deficit stood at about $1.97 trillion through August, essentially unchanged from a year earlier and above the $1.775 trillion deficit for all of fiscal 2025. Interest costs fell $14 billion in August because of changes in inflation accruals, but remained $143 billion, or 13%, higher over the first 11 months of the fiscal year.