U.S. Budget Deficit Swells in July 2026 Amid Questions Over DOGE Savings Claims

The Treasury’s latest monthly statement shows the federal government collected $334 billion and spent $766 billion in July, creating a $432 billion deficit—the highest monthly total since March 2021 and the largest July deficit on record. The shortfall equals roughly $14 billion per day. For the first ten months of the fiscal year, which ends on September 30, the deficit has reached $1.8 trillion, up from $1.6 trillion a year earlier. Treasury officials noted that July is typically a “deficit month” because there are no major tax deadlines, and that August 1 was a non-business day, pulling forward benefit payments and adding an extra $99 billion to July’s outlays.

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The Department of Government Efficiency (DOGE), created under President Donald Trump, was officially wound up on July 4. While operating, DOGE advertised $215 billion in “estimated savings” on its “Wall of Receipts.” Its original goal, outlined by Elon Musk, called for at least $2 trillion in cuts, later revised to $150 billion for fiscal 2026. After dissolution, the White House said President Trump would continue to “actively deliver” on his promise to reduce waste, fraud, and abuse.

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The Government Accountability Office (GAO) released a report finding DOGE’s claim of $110 billion in taxpayer savings unreliable and lacking supporting evidence. The GAO highlighted that many reported cancellations pre-dated the agency; for example, 108 leases cited as cuts were already being phased out when DOGE was established. Critics, including Democratic Senator Elizabeth Warren, labeled the agency’s savings figures as fabricated.

Newsweek

Maya MacGuineas, president of the Committee for a Responsible Federal Budget, warned that “we are already feeling the consequences of this extreme borrowing—high interest rates, trillion-dollar interest payments, and looming trust fund insolvency that threatens benefits for Social Security and Medicare.” Governor Ron DeSantis blamed DOGE’s failure for the widening deficit, noting that Congress never codified the agency’s recommendations.

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He described the Trump administration’s lack of deficit-reduction effort and proposed defense-spending increase as “skating on economically thin ice.”

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• “We are already feeling the consequences of this extreme borrowing—high interest rates, trillion-dollar interest payments, and looming trust fund insolvency that threatens benefits for Social Security and Medicare,” — Maya MacGuineas, president of the Committee for a Responsible Federal Budget

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• “DOGE fought the Swamp and the Swamp won,” — Governor DeSantis, wrote governor

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