U.S. Fiscal Deficit Hits Record $1.147 Trillion in First Five Months

The United States recorded a historic budget deficit of $1.147 trillion for the first five months of fiscal year 2025, according to data released by the Treasury Department on Wednesday. This figure surpasses the previous record of $1.047 trillion set during the same period in 2020-2021, a time characterized by massive pandemic relief spending.

For February alone—the first full month under President Donald Trump’s administration—the deficit reached $307 billion, a 4% increase from the previous year. While February receipts hit a record $296 billion, outlays climbed to an even higher record of $603 billion.

The primary drivers of this spending surge were interest on public debt, Social Security payments, and healthcare benefits. Year-to-date, Treasury interest costs totaled $478 billion, exceeding military outlays of approximately $380 billion. Social Security expenditures also rose 8% to about $663 billion, partly due to a 2.5% cost-of-living adjustment.

Despite the administration’s efforts to reduce government spending through the Department of Government Efficiency (DOGE) and new import tariffs, the February data showed minimal immediate impact. Net customs receipts remained relatively flat at $7.25 billion, with Treasury officials noting that the effects of increased tariffs on Chinese goods would likely appear in March data.

However, some specific agency outlays did decline. The Department of Education saw its spending drop to $8 billion from $14 billion a year earlier, while the U.S. Agency for International Development’s outlays fell to $226 million from $542 million.

Fiscal watchdogs expressed concern over the trajectory. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, stated that government borrowing amounts to roughly $8 billion per day. "We have done nothing in the way of making progress toward getting our skyrocketing debt under control," she said.