US August deficit falls 52% to $167B, year $1.97T
Business
The US budget deficit fell to $167 billion in August 2026, a huge 52% drop from last year.
This was mostly thanks to lower government spending, including less paid in interest and calendar shifts in benefit payments.
Still, even with this monthly improvement, the total deficit for the year is stuck at a massive $1.97 trillion.
Tariff refunds plunge, receipts rise $16B
Federal receipts grew by $16 billion (up 5%) compared with last August, boosted by higher customs revenue.
At the same time, tariff refunds took a nosedive and government spending dropped 24% to $527 billion.
Interest payments were down for the month, but overall costs for the year are actually up, already topping the full-year fiscal 2025 deficit of $1.775 trillion.