US October-February budget deficit hits record $1.147 trillion

The U.S. budget deficit for the first five months of fiscal 2025 hit a record $1.147 trillion, with a $307 billion deficit in February alone. Despite efforts to cut spending, outlays for debt interest and benefits outweighed revenue growth. The deficit is on track to reach $1.063 trillion for the year so far, with increased spending on interest, Child Tax Credit, and Social Security payments. Trump’s tariffs and spending cuts have not significantly impacted the deficit. The Treasury Department is closely monitoring the situation.