MNI BRIEF: US Budget Deficit $1.3T In First Half of 2025

The United States saw a USD1.307 trillion federal budget deficit in the first half of fiscal year 2025, the largest deficit for the first six months of the year in history outside of 2021 Covid spending, according to Treasury Department data released Thursday that also showed a USD161 billion deficit in the month of March. 

The year-to-date budget deficit is up USD242 billion or 23% from the same time last year, the department reported. The 2025 fiscal year to date outlays are up 10% compared to the same point last year at a record USD3.567 trillion and receipts were a record USD2.260 trillion.

The gross interest on the public debt has amounted to USD582 billion fiscal year to date, a record, and up 12% compared to the same point in 2024. The weighted average interest rate on public debt outstanding as of the end of March was 3.28%, an increase of seven basis points from the year ago level.

Receipts from custom duties, which includes tariff collection as well as customs fees, at USD47 billion were up 15% compared to last year. Receipts from custom duties in March increased USD2 billion, or 32%, compared to the same month last year to USD9 billion. The data likely doesn't fully include recent tariff policy adjustments, Treasury Department officials said.

The monthly deficit was down USD76 billion or 32% from last year's March. There were a record USD368 billion in receipts, and USD528 billion in outlays in March.