The U.S. budget deficit declined to $1.77 trillion in fiscal year 2025, marking a 2% drop compared to 2024, the Department of the Treasury announced today.
The deficit was $1.82 trillion in fiscal year 2024. Government revenues for FY 2025 rose 6% year-on-year, reaching $5.23 trillion, while spending increased by 4% to $7.01 trillion.
In September, the final month of the fiscal year, the federal government recorded a budget surplus of $198 billion. Revenues in September grew 3% year-on-year to $544 billion, while spending fell 23% to $346 billion.
Significant contributions to the deficit reduction came from customs duties, which reached record levels. Revenue from tariffs surged 153% in FY 2025, totaling $195 billion.
The U.S. fiscal year runs from October 1 to September 30.
