US July Budget Deficit Hits Record for the Month, Interest Costs Top $1 Trillion This Fiscal Year

The US budget deficit reached $432 billion in July, a record high for the month. Surging Medicare spending and rising debt interest costs were the main drivers, with interest expenses surpassing $1.17 trillion this fiscal year, up 15% year-over-year. Refunds following the Supreme Court's ruling against tariff measures further squeezed fiscal revenue.