The federal government ran a $432.308 billion deficit in July, marking the largest monthly deficit since March 2021, according to the Joint Economic Committee’s latest Monthly Fiscal Update.
The July deficit brought the federal government’s total deficit for the fiscal year through July to $1.799 trillion. The figure is 10.46% higher than the $1.629 trillion deficit recorded during the comparable period in FY25.
The federal government has spent $1.40 for every $1 it has collected in revenue so far in FY26, with 28.62% of total outlays not covered by federal receipts.
For comparison, the federal government recorded a total deficit of $1.775 trillion during fiscal year 2025.
In July, the Fed gov ran a deficit of $432.308B, the largest monthly deficit since March 2021. FY2026-July, deficits were $1.799T. This means 28.62% of outlays in FY2026 were not paid for by revenues & for every dollar the Fed gov received in revenue, it spent $1.40.…
— Joint Economic Committee Republicans (@JECRepublicans) August 13, 2026
The Congressional Budget Office’s (CBO) most recent 10-year budget projections estimate that the federal deficit will reach $1.853 trillion in FY26, followed by $1.887 trillion in FY27 and $2.080 trillion in FY28.
Federal net outlays totaled $766.318 billion in July, bringing total net outlays for the fiscal year through July to $6.284 trillion.
That represents a 5.17% increase compared to the $5.975 trillion in net outlays recorded during the same period in FY25. Total federal outlays reached $7.010 trillion during FY25.
The largest categories of federal spending so far in FY26 have been Social Security, Medicare, income security and veterans benefits, net interest on the national debt, defense, and Medicaid.
Social security accounted for $1.384 trillion in spending through July, or approximately 22% of all federal outlays. Medicare accounted for $954.52 billion, or 15.2%.
Income security and veterans benefits accounted for another $968.31 billion (15.4%), while net interest on the federal debt totaled $931.36 billion (14.8%).
Defense spending totaled $764.71 billion through July, representing 12.2% of federal outlays, while Medicaid spending reached $598.21 billion (9.5%).
In July alone, Medicare accounted for $174.25 billion in federal spending, followed by Social Security at $140.68 billion, income security and veterans benefits at $119.28 billion, net interest at $104.15 billion, defense at $86.05 billion, and Medicaid at $58.30 billion.
The CBO currently projects total federal net outlays of $7.449 trillion for FY26, increasing to $7.772 trillion in FY27 and $8.151 trillion in FY28.
Federal spending has continued to exceed revenue despite receipts also increasing compared to the same period last fiscal year.
The federal government collected $334.010 billion in net receipts during July. For the fiscal year through July, total net receipts reached $4.485 trillion.
That is a 3.19% increase from the $4.437 trillion collected during the comparable period in FY25. Total federal receipts reached $5.235 trillion durning FY25.
Individual income taxes remain the largest source of federal revenue, generating $2.369 trillion through July, or 52.8% of all federal receipts.
Social insurance and retirement taxes generated another $1.523 trillion, accounting for 33.9% of receipts.
Corporation income taxes have generated $292.91 billion so far in FY26, representing 6.5% of total receipts. Customs duties have brought in $154.47 billion (3.4%), while all other receipts accounted for $146.22 billion (3.3%).
In July, individual income taxes generated $173.27 billion, while social insurance and retirement taxes generated $139.07 billion. Corporation income taxes generated $13.57 billion during the month.
Customs duties recorded a negative $8.55 billion in July, compared with $135.69 billion collected during the comparable period of FY25. Despite the July figure, customs duties have generated $154.47 billion for the fiscal year to date.
The CBO projects federal receipts will total $5.596 trillion in FY26, $5.885 trillion in FY27 and $6.071 trillion in FY28.
While federal receipts have increased 3.19% compared with the same point in FY25, net outlays have increased by 5.17%
The difference between federal spending and revenue has contributed to the $1.799 trillion deficit accumulated through July.
The federal government’s fiscal year ends September 30, meaning the July figures cover 10 months of FY26.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
The City of Surprise announced it has suspended its use of automated license plate readers (ALPRs) after a routine audit earlier this month identified an anomaly in the system. The audit prompted an investigation into a potential violation of department policy and the placement of a Surprise police officer on administrative leave.
Surprise Police announced the suspension on Wednesday, saying the department discovered an irregularity involving its Flock automated license plate reader system. The department said the investigation remains ongoing and that additional information will be released when appropriate.
Maintaining community trust is of the utmost importance to the Surprise Police Department. That’s why we are letting you know that we discovered an anomaly in the use of the Flock automated license plate reader (ALPR) system this week that has resulted in the City suspending the… pic.twitter.com/CEOk1cDHzp
Surprise Police Chief Evan Becher stated, “Public trust is of the highest importance to the Surprise Police Department and maintaining that trust requires transparency and accountability. While we still need to complete an investigation into this irregularity, we are taking this incident very seriously. That is why we took immediate action to halt the program, investigate the issue and make the community aware of it.”
The City of Surprise began using ALPR technology more than two years ago and currently has 28 cameras operating throughout the city.
According to the City, the technology has helped law enforcement solve numerous serious crimes, including homicides, robberies, and carjackings.
The city maintains a policy governing the use of ALPR technology and conducts regular audits intended to identify potential misuse. Surprise officials said the most recent audit, functioned as intended by identifying the incident of irregular use.
Chief Becher said the city is using the incident as an opportunity to evaluate additional safeguards that could further strengthen oversight of the technology.
“This technology has proven to be extremely valuable in solving serious crimes. As we look to continue the use of this public safety tool, we want strong safeguards in place that not only alert of misuse but also prevent it,” added Becher. “Surprise Police Department is committed to ensuring enhanced protections are in place before reimplementing use of ALPR cameras.”
The Surprise suspension comes amid growing scrutiny of Flock license plate reader systems across the Valley, with several Arizona law enforcement agencies taking action involving the technology within a matter of days.
The City of Chandler announced earlier this month that it would discontinue its use of 40 fixed-camera Flock ALPRs after an audit identified what they considered an anomaly.
The incident involved an officer who misused the system to track a family member with medical issues. The officer subsequently resigned, and Chandler officials announced the Flock service would not be renewed.
In Apache Junction, a police officer resigned on August 10 following an internal investigation into allegations that he used Flock cameras to track his wife. The department announced the officer’s resignation after the investigation into his use of the system.
In Tempe, police announced on August 11 that the city would stop sharing data collected from its 33 Flock cameras with other agencies. The decision followed community concerns about privacy and recent reports involving alleged misuse of ALPR technology in other Arizona cities.
Tempe said its cameras would remain in place, but other law enforcement agencies would have to request information through the appropriate process.
“While we had previously restricted data sharing to Arizona law enforcement agencies only, this additional step will further safeguard Tempe’s data and ensure we maintain appropriate control over access,” stated Tempe Police Chief Ken McCoy.
Goodyear Police also announced this month that an officer has been placed on administrative leave following an audit of Flock ALPR use that identified potentially concerning activity.
The department said the investigation uncovered a possible violation of department policy and a possible criminal violation. The officer’s access to department computer systems was also cut off while the investigation continues.
GYPD Releases Information Regarding ALPR Use Policies and Internal Audit Process pic.twitter.com/zEAetg8iam
The developments in Surprise, Chandler, Apache Junction, Tempe, and Goodyear have all occurred within roughly one week, highlighting increasing attention being paid to how law enforcement agencies use automated license plate reader technology and the safeguards in place to prevent unauthorized access.
While law enforcement agencies have praised the technology as an important tool for investigating serious crimes, the recent incidents have raised questions about privacy, data sharing, and protections against improper use.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
Congressman Juan Ciscomani (R-AZ-06) has once again been ranked as Arizona’s most bipartisan member of Congress, earning an “A” grade and a 97.5 Bridge Score in the latest Bridge Grades report evaluating members of Congress.
The score, based on data through June 30 2026, places Ciscomani among the top 20 most bipartisan members of the entire House. His 97.5 score is more than double the House average of 44.9.
Bridge Grades, a nonpartisan project of the Mediators Foundation, evaluates members of Congress based on how collaboratively or divisively they govern.
The organization uses third-party data examining legislative records, bipartisan bill sponsorship and co-sponsorship, public statements, rhetoric, and other measures of congressional collaboration.
According to the organization, “bridgers” are lawmakers who build bipartisan consensus and coalitions, while “dividers” pursue more partisan approaches to governing.
For Ciscomani, the latest recognition marks the second consecutive time he has received an “A” grade from the Bridge Grades.
“Getting results for Arizona families means working with anyone willing to find solutions, regardless of party,” stated Ciscomani. “I was sent to Congress to deliver common-sense, lasting results for Arizonans, and I will keep fighting to deliver real, tangible outcomes for our local communities. This recognition again reflects the hard work of my team and our commitment to ensuring Southern Arizona has a seat at the table in Washington.”
Ciscomani’s bipartisan ranking comes alongside his record of legislative activity during the 119th Congress.
According to data cited by the congressman, he has introduced 32 bills, with 10 passing the House of Representatives, as well as bringing tens of millions of dollars in federal investment back into Arizona.
The congressman has also been recognized for his legislative effectiveness. The nonpartisan Center for Effective Lawmaking previously ranked Ciscomani as the most effective member of Arizona’s congressional delegation during the 118th Congress.
As a member of the House Appropriations and Veterans’ Affairs Committees, Ciscomani has focused on issues including national security, veterans’ services, border security, Arizona’s water resources, and federal investments in local communities.
The latest Bridge Grades recognition adds another national bipartisan distinction to Ciscomani’s record as he prepares for another general election campaign in Arizona’s Sixth Congressional District, where he faces Democratic nominee JoAnna Mendoza.
“Voters who want lower costs, safer communities and funding for local priorities trust Representative Juan Ciscomani to break through the D.C. noise and get results,” stated NRCC Spokesperson Ben Petersen. “But far-left lobbyist Joanna Mendoza would jeopardize Arizonans’ priorities for her extreme agenda, raising taxes and risking their safety.”
“Working down the aisle” has remained a central theme of Ciscomani’s congressional record with his office pointing to bipartisan legislation, federal funding for Arizona communities, and legislation addressing issues ranging from veterans and critical mineral to economic development.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
The Joint Economic Committee released its Monthly Inflation Update for July 2026, showing that consumer prices continued to rise, while real earnings remained mostly steady during the month.
According to the report, the headline Consumer Price Index for All Urban Consumers (CPI-U) increased 0.07% from June to July and rose 3.36% over the previous year.
Core CPI, which excludes food and energy prices, increased 0.22% in July and was up 2.48% from July 2025.
Energy prices declined 1.48% in July but remained significantly higher than a year earlier, with energy price inflation increasing 14.73% over the past 12 months. Food prices increased 0.08% during July and were up 2.98% compared with July 2025.
CPI-U increased 0.07% in July & rose to 3.36% over the past year. Core CPI increased 0.22% & rose to 2.48% over the past year. Energy price inflation was down by 1.48% in July & was up 14.73% over the past year. Food price inflation rose 0.08% & was up 2.98% over the past year.…
— Joint Economic Committee Republicans (@JECRepublicans) August 12, 2026
Inflation also varied across the country. Annual headline CPI inflation was highest in the Northeast at 4.1%, followed by the Midwest at 3.5%. The South recorded annual inflation of 3.2%, while the West had the lowest rate among the four regions at 3.0%.
The inflation report comes less than a week after a disappointing jobs report that showed the U.S. economy unexpectedly lost 23,000 jobs in July. Economists had expected employers to add jobs during the month.
The Bureau of Labor Statistics also sharply revised employment gains for May and June downward by a combined 103,000 jobs, providing a weaker picture of the labor market than previously reported.
The July employment report also showed an unemployment rate of 4.1%, down slightly from June. However, the decline was accompanied by a reduction in labor-force participation, while employment fell in areas including local government, education, and retail trade sectors. Healthcare continued to trend upward.
The combination of persistent inflation and signs of a weakening labor market leaves the Federal Reserve facing a difficult balancing act as it considers its next interest-rate decision.
The Federal Reserve previously voted 9-3 to maintain the benchmark interest rate, and the latest inflation and employment data could further reduce pressure on the central bank to raise rates at its September meeting.
While inflation remains above the Fed’s 2% target, the weaker-than-expected jobs numbers and downward revisions to previous employment gains could give policymakers additional reason to exercise caution.
The Federal Reserve will receive another round of inflation and employment data before its September meeting, giving policymakers a final set of economic data to consider as they weigh continued price pressures against growing signs of a cooling labor market.
The July report also examined changes in workers’ real earnings, which account for the effects of inflation. For all employees on private, non-farm payrolls, real average weekly earnings decreased 0.02% from June to July, while real average hourly earnings declined 0.09%.
Among production and nonsupervisory employees on private non-farm payrolls, real average weekly earnings increased 0.06% during the month. Real average hourly earnings for the group remained unchanged, with a net change of 0.00%.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
A Maricopa County Superior Court judge has ruled that Secretary of State Adrian Fontes’ proposed ballot language for Proposition 145 violates Arizona law, blocking Fontes from using the language on the November ballot.
The ruling came in a lawsuit filed by Arizona House Speaker Steve Montenegro (R-LD29) and Senate President Warren Petersen (R-LD14), who challenged the ballot language for the proposed constitutional amendment concerning Empowerment Scholarship Accounts (ESA) for children of military families.
Montenegro and Petersen alleged that Fontes’ proposed language improperly characterized Proposition 145 by informing voters that approving the measure would also nullify Proposition 212, a separate ballot initiative that would make changes to Arizona’s ESA program.
Petersen and Montenegro sought an injunction preventing Fontes from using the proposed descriptive title and “yes/no” language on the official ballot.
Fontes’ proposed language stated that a “yes” vote would amend the Arizona Constitution to “nullify Proposition 212, which imposes spending and income limits” on ESAs.
Maricopa County Superior Court Judge David McDowell ruled that the language did not comply with A.R.S. § 19-125(D), which requires ballot descriptions to explain the effect a measure would have on existing law.
“The reference to Proposition 212 in the title and the ‘yes/no’ language is not a reference to existing law,” McDowell wrote in his ruling.
Because Proposition 212 is a proposed initiative that voters will consider in November, rather than an existing law, McDowell determined that Fontes could not include a reference to its potential nullification in the official ballot language for Proposition 145.
The court therefore enjoined the Secretary of State from using the proposed title and “yes/no” language for Proposition 145 on the official ballot.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
