BREAKING: The US deficit is now up to $1.97 trillion in the first 11 months of FY2026, the 4th-largest deficit at this point in the fiscal year in history. This is already higher than the full-year FY2025 deficit of $1.78 trillion. In August, the US Treasury's budget deficit technically fell -$178 billion YoY, or -51%, to $167 billion. This comes as government outlays dropped -$162 billion YoY, to $527 billion, but the decline was largely due to a calendar shift, as August 1st fell on a Saturday, pushing Medicare and Social Security payments normally made on the first of the month into July. However, adjusting for these payments, which account for some of the largest federal outlays, the monthly deficit rose +$7 billion YoY, to $248 billion, according to the US Treasury. The US is on an unsustainable fiscal path.