The US budget deficit has exceeded $1 trillion in the current fiscal year since the start of the fiscal year in October, according to data published by the Treasury Department. At the end of February, the cumulative deficit stood at $1.004 trillion, about 12% less than over the same period a year earlier. In February alone, federal spending exceeded revenue by $308bn, a level comparable to that recorded in February 2025.
The relative reduction in the deficit is largely explained by a sharp rise in customs revenue. It reached $151bn over the first five months of the fiscal year, up $113bn, or 294%, from last year. This comes as corporate tax receipts fell by $27bn, or 17%, leading tariffs to now surpass those tax revenues.
Economists note that the impact of the recent Supreme Court decision striking down a large share of the tariffs imposed by Donald Trump is not yet reflected in the data.
The US budget deficit has topped $1 trillion since October
Rising revenue, notably from tariffs, has nonetheless narrowed the gap compared with the previous year.
Published on 03/12/2026 at 01:29 am IST
Share
Share
