U.S. Budget Deficit Surges Past $1 Trillion in February
- Nyrah Gupta
- Apr 6
- 2 min read
The U.S. budget deficit for the first five months of fiscal 2025 hit a record of $1.147 trillion. This included a $307 billion February deficit for President Donald Trump's first full month in office, up 4% from a year earlier. Though the fiscal year is not yet at the halfway point, the budget shortfall for February 2025 has already passed the $1 trillion mark. This has raised concerns about the country's financial future.
Government spending eased slightly on a monthly basis, still, it far outpaced revenue, according to a Treasury Department statement. The deficit is $318 billion higher than in the same period last year.
Budget Deficit Keeps Growing
Net costs to finance the $36.2 trillion national debt edged lower to $74 billion for the month. However, the total net interest payments year to date rose to $396 billion. This amount is now just behind the country's expenditures on defence and health care.
President Donald Trump has made getting the government’s fiscal house in order a priority since taking office. Since taking over, he has created the so-called Department of Government Efficiency, to be led by Elon Musk.
The advisory board has led job reductions across various departments, alongside offering early retirement incentives. A Treasury spokesperson stated that the DOGE initiatives have not yet shown any clear effects but deferred further inquiries to the Musk-led panel. Meanwhile, Trump is advocating for an extension of the Tax Cuts and Jobs Act, a key policy from his first term. However, several think tanks claim that renewing the act could increase the deficit by $3.3 trillion over the next decade.
References
"Big Worry for Trump: U.S. Budget Deficit Explodes in February, Surpassing $1 Trillion in Record-Breaking Year-to-Date Surge, Raising Concerns over Unprecedented Fiscal Challenges." The Economic Times, 13 Mar. 2025,
https://economictimes.indiatimes.com/news/international/us/big-worry for-trump-u-s-budget-deficit-explodes-in-february-surpassing-1-trillion in-record-breaking-year-to-date-surge-raising-concerns-over-unpreced ented-fiscal-challenges/articleshow/118986242.cms
"U.S. Budget Deficit Surged in February, Passing $1 Trillion for New Year-to-Date Record." CNBC, 12 Mar. 2025,
https://www.cnbc.com/2025/03/12/us-budget-deficit-surged-in-february passing-1-trillion-for-new-year-to-date-record.html
Lawder, David. "US October-February Budget Deficit Hits Record $1.147 Trillion." Reuters, 12 Mar. 2025,
https://www.reuters.com/world/us/us-budget-deficit-trumps-first-full-m onth-office-reaches-307-billion-2025-03-12/
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