Record U.S. Budget Deficit Surges Amid Fiscal Shifts and Spending Increases

The U.S. recorded a $145 billion budget deficit for December, largely driven by shifts in benefit payments and higher military spending. Customs receipts have plateaued, influenced by tariff adjustments. The fiscal deficit for the first quarter of 2026 showed an improvement, despite continued increases in social program expenses and debt interest.

The United States government reported a budget deficit of $145 billion in December, an increase of 67% from the previous year. This surge is attributed to record high expenditures, influenced by changing schedules for benefit payments and receipts, according to the Treasury Department's recent statement.

Customs receipts for the first quarter of fiscal 2026 reached $90 billion, a significant rise compared to the same period last year. The implementation of trade agreements, which reduced tariffs on imports from China and South Korea, impacted these figures. The Supreme Court is also expected to decide on the legality of Trump's tariffs, potentially affecting future customs revenues.

Adjustments made to December's budget figures highlight that the deficit could have been $112 billion, a reduction from prior estimates. Meanwhile, military spending escalated to $98 billion, partly due to the resumption of payments following an October government shutdown, as stated by a Treasury official.