Deficits, interest costs, and debt dominate FY2027 budget politics

The July deficit reached $432.3 billion and fiscal-year interest costs reached $1.17 trillion, intensifying debate over taxes, entitlements, and spending. The Senate budget resolution depends on roughly $3.4 trillion in unspecified savings while allowing potentially deficit-increasing reconciliation changes; AI-related payroll-tax losses add a longer-term risk.