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Nikki Haley urges Republican focus on affordability ahead of midterms
Haley's remarks came as the federal deficit and debt-servicing costs continued to rise ahead of the midterm elections.
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Malvika Choudhary - Tue, 18, Aug 2026
- 13:58 EDT
- 73
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Nikki Haley / Wikimedia commons
Former South Carolina Gov. Nikki Haley urged Republicans to make federal spending and affordability a focus of their campaigns ahead of the 2026 midterm elections.
“The U.S. government now spends more money just on interest than it does to fund the entire U.S. military or to provide healthcare for seniors,” Haley wrote in a social media post. “Every Republican should address this going into the midterms and commit to cutting spending and focusing on affordability.”
Also Read: Nikki Haley rules out bid for South Carolina's vacant U.S. Senate seat
Haley’s comments followed the release of July budget data showing a $432 billion federal deficit, the largest monthly deficit since March 2021. The shortfall was $141 billion higher than in July 2025.
The July deficit pushed the federal government’s deficit for the first 10 months of fiscal year 2026 to $1.799 trillion, already exceeding the $1.775 trillion deficit recorded for all of fiscal year 2025.
Federal outlays reached about $766 billion in July, compared with roughly $334 billion in receipts. The deficit was partly affected by the timing of federal benefit payments, with some payments normally made in August shifted into July. Even after adjusting for those timing effects, the deficit was about $333 billion, up 18 percent from a year earlier.
The cost of servicing the national debt has also become a growing part of the federal budget. The Congressional Budget Office projects that net interest costs will reach about $1 trillion in fiscal year 2026, up from $970 billion in 2025. CBO projects net interest costs will rise from 3.3 percent of gross domestic product in 2026 to 4.6 percent in 2036, when they would account for nearly one-fifth of federal spending.
Haley has made federal borrowing a recurring focus in recent months. In a separate post on X in July, she wrote, “Washington is borrowing $60,000 a second and paying $24 BILLION a week in interest alone.” She said the national debt was “spiraling” as Congress prepared to leave Washington for its summer recess.
The comments come as the federal government continues to run large deficits and investors demand higher yields on longer-term Treasury securities. On Tuesday, the 30-year Treasury yield rose to 5.323 percent, its highest level since 2007, while the 10-year yield reached 4.744 percent.
CBO projects the federal deficit will reach $1.9 trillion in fiscal year 2026 and grow to $3.1 trillion by 2036. Federal debt held by the public is projected to rise from 101 percent of GDP in 2026 to 120 percent in 2036.
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