Key facts
- The U.S. federal budget deficit for June was $120 billion.
- This compares to a $27 billion surplus in June of the previous year.
- Tariff refunds totaling $49.2 billion were a significant factor in the deficit increase.
- Total government receipts in June decreased by 6% to $496 billion.
- Government outlays in June increased by 23% to $616 billion.
- Interest payments on public debt rose by 28% to $185 billion in June.
The U.S. federal budget deficit for June surged to $120 billion, a dramatic shift from the $27 billion surplus recorded in June of the previous year. This increase was significantly influenced by substantial refunds of tariffs previously imposed by President Donald Trump.
The Treasury Department reported that while gross customs duty collections for June amounted to $23.6 billion, refunds reached $49.2 billion, resulting in a net outflow of $25.6 billion from customs duties alone. Overall, total receipts for June declined by 6% to $496 billion compared to the prior year.
Government outlays in June were reported at $616 billion, a 23% increase from the previous year. However, the Treasury noted that June 2025 outlays were affected by calendar shifts in benefit payments. On an adjusted basis, the June deficit saw a 79% increase from the prior year's adjusted deficit of $67 billion.
Interest payments on public debt also rose in June, increasing by 28% to $185 billion. This rise was partially offset by an increase in interest received by federal trust funds. For the fiscal year to date, the deficit has grown by 2% to $1.367 trillion, with receipts up 4% and outlays up 3%.