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U.S. Budget Deficit Drops to $1.78 Trillion Amid Concerns

10/17/2025

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Summary

Story summary

The U.S. budget deficit for fiscal year 2025 fell to $1.78 trillion, down 2% from 2024, aided by tariff receipts.
Federal borrowing remains high as interest payments on the national debt total $1.22 trillion.
The Tax Policy Center projects that recent tax laws could raise federal debt by $4.2 trillion by 2034.
Treasury Secretary Scott Bessent aims to cut the deficit-to-GDP ratio to 3% by 2028.

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Story summary

The U.S. budget deficit for fiscal year 2025 fell to $1.78 trillion, down 2% from 2024, aided by tariff receipts.
Federal borrowing remains high as interest payments on the national debt total $1.22 trillion.
The Tax Policy Center projects that recent tax laws could raise federal debt by $4.2 trillion by 2034.
Treasury Secretary Scott Bessent aims to cut the deficit-to-GDP ratio to 3% by 2028.