US posts a $166.8 billion deficit in August as the yearly gap tops $1.96 trillion

The US Treasury's Bureau of the Fiscal Service published its Monthly Treasury Statement for August 2026, with data last updated 17 September.

The figures for August 2026

• Receipts: $360.03 billion
• Outlays: $526.83 billion
• Deficit: $166.80 billion

Fiscal year to date (October 2025 through August 2026)

• Receipts: $4.845 trillion
• Outlays: $6.811 trillion
• Deficit: $1.966 trillion

August's shortfall was smaller than July's $432.3 billion deficit but wider than March's $164.1 billion. Only April, when tax payments are concentrated, showed a surplus this fiscal year, of $215.0 billion. Monthly figures swing with the calendar, because payments due on a weekend or holiday are made earlier, so the year-to-date total is the steadier measure.

Compared with a year earlier

• August 2025: a deficit of $344.8 billion, on receipts of $344.3 billion and outlays of $689.1 billion. This August's deficit is $178.0 billion smaller, mostly because outlays were $162.3 billion lower
• October 2024 through August 2025: a deficit of $1.973 trillion, on receipts of $4.691 trillion and outlays of $6.664 trillion. The deficit for the same eleven months of fiscal year 2026 is about $8 billion smaller: receipts are $154.5 billion higher and outlays $146.7 billion higher
• Fiscal year 2025 in full: a deficit of $1.775 trillion

Why the deficit matters for the dollar

The budget deficit doesn't move currency markets the way a jobs report or a central bank decision does, but it sits behind two things that do: how much debt the Treasury issues, and the path of bond yields the Federal Reserve has to set policy against. The Fed raised its target range to 3.75%–4.00% on 16 September and projected the funds rate staying close to 4% through 2027 (report); a persistently large deficit adds to the supply of Treasury debt investors are asked to absorb at those yields. The Treasury publishes the statement every month, and September's, which closes fiscal year 2026, will give the full-year total. Live prices: the US 500.