In June, the U.S. government recorded a surplus of just over $27 billion, a notable shift from the $316 billion deficit reported in May, according to the Treasury Department. This change was attributed to a significant increase in government receipts, bolstered by higher tariff revenues. The fiscal year-to-date deficit now stands at $1.34 trillion, which is a 5% increase from the previous year; however, when adjusted for calendar timing, the deficit decreased by 1%.
The rise in receipts for June was 13% compared to the same month last year, while government outlays decreased by 7%. Year-to-date figures show receipts have increased by 7% and spending has gone up by 6%. This marks the first June surplus since 2017.
The increase in tariff collections has played a critical role in improving government finances. Customs duties reached approximately $27 billion in June, a rise from $23 billion in May and 301% higher than in June 2024. For the fiscal year, tariff collections have totaled $113 billion, an 86% increase from the previous year. These tariffs were implemented during the Trump administration.
Despite the surplus, challenges remain, particularly with high Treasury yields impacting federal finances. In June, net interest on the $36 trillion national debt was $84 billion, making it the second-highest expenditure category after Social Security. Projections indicate total interest payments could reach $1.2 trillion for the entire fiscal year.
Looking ahead, discussions about potential interest rate cuts by the Federal Reserve continue, though markets do not anticipate changes until September. Meanwhile, a recent spending bill is projected to add approximately $3.4 trillion to the national debt over the next decade, according to the Congressional Budget Office.