US deficit grows nearly 20% to $291 billion in July

The U.S. government's budget deficit grew nearly 20% in July to $291 billion, despite a $21 billion increase in customs duty revenue from President Donald Trump's tariffs, with outlays growing faster than revenue, the Treasury Department reported yesterday, August 12.

The July deficit increased 19%, or $47 billion, from July 2024. Revenues for the month grew 2.0%, or $8 billion, to $338 billion, while outlays jumped 10%, or $56 billion, to $630 billion, a record for the month.

July of this year had fewer working days than last year, so the Treasury said adjusting for the difference would have increased revenue by about $20 billion, resulting in a deficit of about $271 billion.

Gross customs revenue in July rose to about $28 billion from about $8 billion a year earlier due to higher tariff rates imposed by Trump, a Treasury official said. This data builds on the tariff-related surge over the past two months, as companies importing goods paid those duties.

For the first 10 months of the fiscal year, the Treasury reported a deficit of $1.63 trillion, up 7.0%, or $112 billion, from the same period last year.

Revenue rose 6.0%, or $262 billion, to $4.347 trillion, a record for the 10-month period, while disbursements grew 7.0%, or $374 billion, to $5.975 trillion, also a 10-month record.