The US Treasury building in Washington.
Saul Loeb | AFP | Getty Images
The U.S. budget deficit exceeded $1 trillion in the fiscal year that ended in February, Treasury data showed on Wednesday, but it was significantly lower than the same period a year earlier.
Expenses exceeded revenues by $308 billion in February, roughly matching the deficit recorded in the same month last year.
The fiscal year-to-date budget deficit totaled $1.004 trillion, about 12% less than the comparable period in 2025, as government revenues grew faster than spending.
What helped close this gap was a sharp increase in customs duty collections. Tariffs totaled $151 billion in the first five months of the fiscal year, an increase of approximately $113 billion, or 294%, from the same period last year.
The recent Supreme Court ruling striking down many of President Donald Trump’s tariffs has not yet appeared in the data. Economists say this may reflect previously collected duties still being processed, a potential surge in imports ahead of the ruling, and lingering questions about whether and to what extent the U.S. will need to refund duties it has already collected.
Additionally, President Trump has imposed additional tariffs since this decision, which could continue to increase tariff revenue.
Corporate tax revenues also fell significantly, down $27 billion (17%) from the same period last year. In the past fiscal years, customs revenue has actually exceeded corporate tax revenue, an unusual trend.
Rising interest rates also continued to put pressure on the federal fiscal situation.
Net interest payments on the roughly $39 trillion national debt reached $79 billion in February, more than any other category except Social Security, unemployment insurance, income protection, which includes programs such as housing assistance and food assistance, and health care.
