BREAKING: The US Treasury posted a $120 billion deficit in June, a sharp deterioration from a $27 billion surplus in June 2025. This comes as government receipts dropped -$31 billion YoY, to $496 billion. The decline was largely driven by a surge in tariff refund payments after the Supreme Court ruled the tariff increases illegal, resulting in a -$26 billion net decline in customs duty receipts. At the same time, outlays surged +$117 billion YoY, to $616 billion. In the first 9 months of FY2026, the US deficit rose +$29 billion YoY, to $1.37 trillion, the 3rd-highest deficit at this point in the fiscal year in history. Over the same period, net interest expense rose +$78 billion YoY, to $827 billion, on track for the highest annual net interest expense on record. The US deficit crisis is accelerating.