WASHINGTON, DC –Today, the Joint Economic Committee released its Monthly Fiscal Update. In FY2025, the nation ended with a $1.78 trillion deficit, $50 billion (2.8 percent) less than FY2024. Leading to the decreased deficit impact was the record-setting tariff collections of $195 billion for FY2025, increased tax receipts, and modifications to the student loan program authorized in the 2025 reconciliation act. While customs duties jumped significantly in FY2025, it still accounts for only 3.7 percent of total receipts.

In September, total federal net outlays were $345.713 billion and net receipts were $543.663 billion, leaving the federal government with a $197.950 billion surplus for the month. However, in FY2025, net outlays were $7.010 trillion, a 3.91 percent increase from $6.746 trillion in FY2024, and net receipts were $5.235 trillion, a 6.42 percent increase from $4.919 trillion in FY2024. Therefore, in FY2025, spending ended higher than revenues, leading to a $1.776 trillion deficit. This means 25.33 percent of outlays in FY2025 were not paid for by revenues, and for every dollar the federal government received, it spent $1.34.

While increased tariff receipts helped slow the ever-increasing national debt in FY2025, interest on the debt hit a new record high, totaling more than $1.2 trillion, which is $100 billion more than in FY2024. Net interest payments in FY2025 reached almost $971 billion, the fourth-largest federal expense behind Social Security, Income Security and Veterans Benefits, and Medicare, and about $100 billion more than defense spending. By 2051, the Committee for a Responsible Budget projects that interest payments on the nation’s debt will be the largest expense in the U.S. budget, surpassing Social Security.    

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Please see the full Monthly Fiscal Update for greater detail of the nation's receipts, outlays and deficit.