Deficit on track for $2.1T as tariff refunds outrun collections
Tariff refunds paid in July exceeded collections, pushing the federal deficit $200 billion above forecasts from six months ago.
In July the federal government paid out more in tariff refunds than it collected, a reversal that has increased the budget shortfall. That development has driven this fiscal year’s deficit about $200 billion higher than forecasters projected six months ago, leaving the deficit on track for roughly $2.1 trillion.