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July Deficit Hits $432 Billion as Debt Tops $40T

8/20/2026

50 9 Full Breakdown

Summary

Story summary

U.S. Treasury Secretary Scott Bessent said the budget deficit likely peaked under President Donald Trump.
July’s monthly U.S. budget deficit reached $432 billion, the highest in more than five years.
Total government debt exceeded $40 trillion for the first time, more than doubling in ten years.
Bessent, President Trump and OMB Director Russell Vought are pursuing fiscal consolidation that could save several hundred billion dollars.

History

Historical Context

The Clinton administration posted a surplus from 1998-2001, dropping the debt-to-GDP ratio to 33.6 % by 2000, the first surplus since 1969. Subsequent tax cuts and entitlement spending lifted public-debt from 34.7 % of GDP in 2000 to about 70 % in 2012 and created a July 2024 deficit of $432 billion. Now Treasury Secretary Scott Bessent urges consolidation to keep the debt path from repeating the 2011 debt-ceiling crisis.

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Story summary

U.S. Treasury Secretary Scott Bessent said the budget deficit likely peaked under President Donald Trump.
July’s monthly U.S. budget deficit reached $432 billion, the highest in more than five years.
Total government debt exceeded $40 trillion for the first time, more than doubling in ten years.
Bessent, President Trump and OMB Director Russell Vought are pursuing fiscal consolidation that could save several hundred billion dollars.

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