Key facts
- The U.S. budget deficit for May decreased by 7% to $293 billion.
- Tariff refunds totaling $21.97 billion were issued in May.
- Gross customs collections were $21.93 billion, resulting in net customs outflows of $42 million.
- Total receipts fell 10% to $336 billion, while outlays decreased 9% to $628 billion.
- The adjusted May deficit showed a 32% increase from the prior year.
- The year-to-date deficit for fiscal 2026 stands at $1.246 trillion.
The U.S. budget deficit for May decreased by 7% to $293 billion, influenced by calendar shifts in benefit payments that reduced both outlays and receipts. However, the Treasury Department reported significant outflows due to refunds of emergency tariffs imposed under President Donald Trump, which were declared illegal by the Supreme Court in February.
In May, customs duty refunds amounted to $21.97 billion against gross collections of $21.93 billion, resulting in net customs outflows of $42 million for the month. Prior to these refunds, customs duties had been a substantial source of monthly Treasury receipts, reaching over $30 billion late last year.
Overall, total receipts for May fell 10% to $336 billion compared to the previous year, while outlays decreased by 9% to $628 billion. When adjusted for calendar shifts of June payments into May, the deficit for May represented a 32% increase from the prior year.
For the first eight months of fiscal year 2026, the unadjusted budget deficit totaled $1.246 trillion, a 9% decline from the same period in the previous fiscal year.