On Wednesday, following news that the U.S. budget deficit has soared under President Donald Trump, surging to its highest level in over five years, MAGA economic analysts are suddenly realizing there is a “big problem.”
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“In the month of July, the US Government collected $334 Billion,” posted Geiger Capital, a pseudonym account for a popular conservative market analyst who voted for Trump in 2024. “Just one problem… They spent $766 Billion. A $432 BILLION deficit. In one month.”
“Oof,” posted self-proclaimed “America First Economist” and Heritage Foundation member E.J. Antoni. “56 cents of every dollar that the gov’t spent last month was borrowed.” He continued, “The cumulative deficit for the first 10 months of this fiscal year is $23 billion larger than the total deficit for the entirety of the previous fiscal year – headed in the wrong direction while knocking on $40 trillion in debt.”
“Interest on the debt was a whopping $118 billion in Jul, or ~63 percent of all personal and corporate income taxes collected last month,” he added. “Absolute insanity.”
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According to Bloomberg, the record shortfall is “due to an acceleration in federal spending.” As the outlet explains, “After adjusting for calendar-year differences, the gap is tracking 5 percent wider than 2025…the biggest July gap ever, according to data compiled by Bloomberg.” Dramatically increased Medicare spending played a major role in the surge, while a $33 billion loss was due to refunds for Trump’s illegal tariffs. Overall revenue was down by an adjusted $12 billion.
Besides his tariff regime, Trump has taken a number of actions that have contributed to the deficit. His One Big Beautiful Bill Act, for example, is projected to add $4.6 trillion to the deficit over 10 years. According to the Institute on Taxation and Economic Policy, the wealthy “will see substantial tax cuts. Over the next 10 years the wealthiest 1 percent are slated to pay at least a trillion dollars less in taxes than they would have if Congress and the President had done nothing.”
The price tag for the war with Iran has also been a factor, costing roughly $37.5 billion as of late July, with the Trump administration requesting another $70 billion. According to Barron’s, military spending “was up 3 percent in May, 5 percent in June, and now stands at 6 percent higher fiscal year to date.” That, however, just accounts for the conflict’s direct costs. Broader economic analysis indicates that the toll on taxpayers is much higher, as much as $130 billion to $150 billion when accounting for surging energy prices, inflation, and borrowing costs.
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