U.S. Budget Deficit Drops Amid Record Customs Receipts

The U.S. Treasury Department announced a $316 billion budget deficit for May, representing a 9% decrease from the previous year. This improvement was significantly influenced by a dramatic rise in customs receipts, which soared to a record $23 billion due to President Donald Trump's aggressive import tariffs.

Customs receipts last month experienced a notable increase since May 2024, showing a 60% year-to-date rise, culminating in $86 billion. These increased revenues contributed to May's total receipts of $371 billion, marking a 15% increase from the prior year. Spending for the month also surged to $687 billion, in part due to adjusted calendar factors.

Despite reduced interest expenses on public debt, May's year-to-date deficit rose to $1.365 trillion, 14% higher than the same period last year. Both receipts and outlays hit record highs for the period, with receipts reaching $3.482 trillion and outlays amounting to $4.846 trillion.

(With inputs from agencies.)