U.S. budget gap drops 52% in August

A report from the U.S. Treasury Department shows that the U.S. federal budget deficit decreased by 52% in August, reaching $167 billion, due to a decline in spending—particularly in customs duties and interest payments—as well as shifts in the timing of some government benefit disbursements. During the first 11 months of the 2026 fiscal year, the cumulative deficit totaled $1.97 trillion, surpassing the deficit for the 2025 fiscal year, which stood at $1.775 trillion. Despite the reduction in spending in August, interest payments increased by 13% compared to the previous year, while federal revenue rose by 5%.

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