The U.S. Department of Treasury recently published a report showing the federal government’s largest July budget deficit in history, at $432 billion, reaching the highest monthly deficit since March 2021.
According to the Treasury Department’s Monthly Treasury Statement, despite receiving $334 billion in revenue, the U.S. government spent $766 billion, with most of the funds – $174 billion – spent on Medicare.
Comparisons To July 2025 Statement
In comparison, the Treasury Department’s July 2025 Statement shows a $291 billion deficit, with the government spending $630 billion – a deficit 48% lower than in 2026.
Of those expenditures, Medicare spending sat at $100 billion.
Social Security spending took the lead in 2025 at $133 billion for July, with it now in the second spot at $141 billion for July 2026.
Additionally, the U.S.’s interest on its debt rose by roughly $26 billion, rising from $91.9 billion in July 2025 to $117.5 billion.
The Department of Education (DOE) saw a sharp decline, with government spending decreasing by roughly 77%, going from 30.6 billion to $7.1 billion.
The Department of Homeland Security (DHS), on the other hand, witnessed a nearly 80% increase in July 2026 compared to the year before.
According to the report, the Tariff refunds also affected the government’s spending as the Trump administration issued $33.38 billion in Customs Duty Refunds from President Donald Trump’s illegal International Emergency Economic Powers Act tariffs.
An unimaginable increase of 4,244.68% from July 2025, when the government issued $770 million in tariff refunds.
Sen. Scott Tells Congress "To Get Serious"
Sen. Rick Scott (R-Fla.) called out the federal government’s spending, urging Congress to fix its spending problem.
“Every American should be alarmed by this! Congress has an out-of-control spending problem, and it’s digging us into a hole, leaving our kids and grandkids to pay the price,” Sen. Scott wrote on X. “It’s time to get serious – BALANCE THE BUDGET and CUT SPENDING.”
