U.S. Federal Budget Deficit Report
The Congressional Budget Office (CBO) announced on Wednesday that the federal budget deficit for the fiscal year ending on September 30 hit $1.8 trillion. This figure is just $8 billion lower than the deficit recorded in fiscal year 2024, as per the CBO’s estimates. This year, revenues reportedly rose by about $308 billion, or 6%.
Additionally, President Trump’s tariff policies resulted in tariffs totaling $195 billion for fiscal year 2025, a notable increase from the $77 billion in tariffs noted for fiscal year 2024.
Maya MacGuineas, chair of the Committee for a Responsible Federal Budget, expressed concern about these figures. She commented, “We learned that amidst a government shutdown, the federal government borrowed $1.8 trillion this past fiscal year. While the deficit hasn’t risen from last year, it hasn’t decreased either. Our debt is now equal to the entire U.S. economy, and as a proportion of the economy, it’s on track to exceed records set post-World War II.”
MacGuineas further stated, “We’re looking at almost $2 trillion in borrowing yearly for the next decade. Is this really sustainable?”
In January, the CBO had projected the federal budget deficit could reach $1.9 trillion this year, with the national debt potentially rising to 118% of gross domestic product by 2035. As of Wednesday, the national debt was reported to be at $37.86 trillion, according to the U.S. Treasury Department’s fiscal data.
