economy
The deficit, explained: What it is, why it's growing, and how to fix it
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TL;DR
- Federal government revenue in July was $334 billion.
- Federal government spending in July was $766 billion.
- Most government revenue came from workers' paychecks.
- Most government spending covered Social Security, Medicare, and national debt interest.
- The July deficit was $432 billion, a record for the month of July.
- The year-to-date deficit stands at $1.799 trillion.
- The annual deficit is projected to reach $2.1 trillion by the end of Fiscal Year 2026, a record high.