US budget deficit surges in 6 months through March
US Senate Majority Leader John Thune and Speaker of the House Mike Johnson hold a press conference on the Republican budget bill at the US Capitol on April 10, 2025 in Washington, DC. (Photo by Kayla Bartkowski / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)
WASHINGTON, United States — The US budget deficit expanded significantly in the first six months of the fiscal year, according to Treasury Department data released Thursday.
This period includes President Donald Trump’s return to the White House,
The deficit widened to the second-highest on record for the October to March period, agency officials told reporters.
This came despite the Trump administration starting efforts to slash the federal workforce and government spending. Such efforts include the recent creation of the Department of Government Efficiency led by Trump ally Elon Musk.
Trump, who returned to the presidency in late January, also imposed fresh tariffs on imports from China in February and March. Revenue collections are beginning to show up in the Treasury’s figures.
The budget gap grew 23 percent to $1.3 trillion from the corresponding period last year. Interest on the public debt and areas like Medicare boosted spending.
Spending outpaces revenues
In the October to March period, revenues rose by three percent to $2.3 trillion. Meanwhile, expenditures grew 10 percent to $3.6 trillion.
Among spending categories, interest on the public debt ballooned by $60 billion to $582 billion for the period. Outlays on Medicare rose $84 billion to $561 billion.
Customs duties collected grew by $6 billion in the six-month period from a year ago, reaching $47 billion, data showed.
This reflects collections from tariffs and other areas. It came as Trump imposed a new 10-percent levy on Chinese goods in February. He raised this level to 20 percent in March.
US officials told reporters that there is usually a month’s delay between a tariff’s enactment and revenue collection.
This means that customs duties collections will likely rise further in upcoming months, as Trump’s various waves of tariffs, including those on metals and autos, take effect.
But officials did not detail how DOGE’s cuts were affecting spending.
