The deficit, explained: What it is, why it’s growing, and how to fix it

Published August 16, 2026 6:00am ET



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The federal government brought in $334 billion in the month of July, with most of that coming directly out of workers’ paychecks. That same federal government spent $766 billion in July, with most of that covering Social Security benefits, Medicare bills, and interest payments on the national debt.

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