U.S. Budget Deficit Surges as Spending Outpaces Receipts in Trump's First Month

The U.S. budget deficit in February, President Trump's first full month, was $307 billion, a 4% increase. Despite record receipts, higher spending led by interest on public debt, Child Tax Credit, and Social Security payments drove the deficit up, impacting fiscal figures significantly.

The Treasury Department reported that the U.S. budget deficit in February, marking President Donald Trump's first complete month in office, reached $307 billion, up by $11 billion from the previous year. Although receipts hit a record high for February at $296 billion, outlays also reached a record $603 billion.

Calendar-adjusted figures indicate the deficit would have been $311 billion, a 3% rise from February 2024. Over the first five months of fiscal 2025, the deficit hit $1.147 trillion, which is $318 billion more than the previous year, due to spending increases.

The rise in February's spending was largely driven by increased expenditure on the public debt's interest, Child Tax Credit disbursements, and boosted Social Security payments, driven by a 2.5% cost-of-living increment for 2025 recipients.

(With inputs from agencies.)