The federal government reported a deficit of $291 billion in July 2025, an increase of $47 billion from the $244 billion deficit recorded in July 2024. Revenues were up in the past month, however, those gains were outpaced by spending increases.
Spending in July 2025 was $56 billion more than in July last year, largely driven by a $21 billion increase in outlays by the Department of Education related to the estimation of outstanding loan costs. Other categories that contributed to the increased spending were Medicaid ($17 billion more than in July 2025), net interest payments ($11 billion), and Social Security ($10 billion). Offsetting those increases was a $19 billion decrease in outlays by the Department of Housing and Urban Development as a result of a significant downward revision to the estimated costs of outstanding housing loans. Receipts were up by $8 billion in July 2025 compared to the previous year — customs duties collections rose by $21 billion, while individual income taxes fell by $8 billion and excise taxes fell by $7 billion.
See the latest numbers on the national deficit for this fiscal year and how it compares to previous years.
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