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U.S. Deficit Hits $1.6 Trillion Amid Soaring Spending

8/13/2025

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Summary

Story summary

The U.S. federal budget deficit soared to $1.6 trillion in the first ten months of FY2025, marking a $109 billion increase from the previous year. Despite a $263 billion rise in tax receipts, spending surged by $372 billion, largely due to escalating mandatory program costs. July alone saw a staggering $289 billion deficit, $45 billion higher than July 2024.

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Story summary

The U.S. federal budget deficit soared to $1.6 trillion in the first ten months of FY2025, marking a $109 billion increase from the previous year. Despite a $263 billion rise in tax receipts, spending surged by $372 billion, largely due to escalating mandatory program costs. July alone saw a staggering $289 billion deficit, $45 billion higher than July 2024.