The federal government posted a $120 billion budget deficit in June, a stark reversal from the $27 billion surplus recorded in June of last year, the U.S. Treasury Department announced Monday. Officials pointed to growing refunds stemming from President Donald Trump’s tariffs as a major factor behind the shift.
According to the Treasury, the government collected $23.6 billion in gross customs duties during the month, but paid out $49.2 billion in refunds — resulting in a net outflow of $25.6 billion. Total receipts for June fell by $31 billion, or 6%, compared to the same month a year ago, coming in at $496 billion.
Total government spending for June reached $616 billion — an increase of $117 billion, or 23%, over the reported June 2025 figure. However, the Treasury noted that last year’s June outlay total was reduced by $97 billion due to timing shifts in benefit payments. When adjusted for that calendar difference, the June deficit was $53 billion higher than the prior year’s adjusted deficit of $67 billion, representing a 79% increase.
Interest payments on the national debt were also a significant factor. The Treasury’s gross interest outlays on public debt climbed $41 billion, or 28%, to $185 billion for the month. That figure was partially offset by a $10 billion increase — about 17% — in interest received by federal trust funds, which totaled $70 billion.
Looking at the broader fiscal picture, the cumulative deficit for the fiscal year to date rose $29 billion, or 2%, reaching $1.367 trillion. Revenues for that period were up $143 billion, or 4%, totaling $4.151 trillion, while spending increased $172 billion, or 3%, to $5.518 trillion.
