Sen. Rand Paul (R-Ky.) has demanded action on federal spending after the U.S. government posted a record $432 billion budget deficit for July.
Rand Paul Slams Record July Deficit
“We shouldn’t be spending $432B – that we don’t have – in a single month,” Paul said on X. He called for Washington to reduce the size of government, end welfare benefits for “illegal aliens” and tackle “rampant fraud.”
He said, “It’s time for Washington to get serious about its spending problem.”
Treasury data showed the government collected $334 billion in July while spending $766 billion, leaving a $432 billion gap. It was the largest July deficit on record and among the biggest monthly shortfalls ever recorded.
In a separate post, Paul warned that Congress could soon approve additional spending legislation, saying it would finance “fraud, welfare, and industry bailouts” while the national debt approaches $40 trillion.
Last week, the U.S. Senate approved a government funding bill aimed at keeping the federal government open through the midterm elections, but the measure still requires approval from the House of Representatives.
DeSantis Blames Congress for DOGE Failure
Earlier, Gov. Ron DeSantis (R-Fla.) also seized on the July deficit to criticize Congress and the Department of Government Efficiency.
DeSantis argued DOGE could identify spending cuts, but Congress had to turn those recommendations into law.
He has called for a constitutional fiscal restraint measure, saying Congress needs stronger incentives to control spending.
CBO Warns Debt Will Keep Rising
The deficit comes as the Congressional Budget Office projects a $1.9 trillion federal deficit in fiscal 2026, equal to 5.8% of GDP.
CBO expects debt held by the public to rise from 101% of GDP in 2026 to 120% by 2036 as growing deficits and interest costs put additional pressure on federal finances.
On Thursday, economist Peter Schiff cautioned that consumer prices could surge further as the U.S. national debt nears $40 trillion.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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