U.S. Government Reports Record $145 Billion December Budget Deficit

The U.S. government reported a budget deficit of $145 billion for December 2025, marking a 67% increase, or $58 billion, compared to December 2024. This record deficit is attributed to unprecedented spending levels and calendar shifts in benefit payments and revenue collection, as stated by the Treasury Department. Notably, December's net customs receipts fell to $27.9 billion, a decline from the previous range of low $30 billion, although this figure is significantly higher than the $6.8 billion recorded in December 2024.

US December Deficit Hits Record $145 Billion as Spending SurgesReutersUS posts record US$145 billion December deficit as outlays outpace receipts

For the first three months of fiscal year 2026, which began on October 1, 2025, the total deficit reached $602 billion, a reduction of $109 billion or 15% from the same period the previous year. This decrease occurred despite record levels of both receipts and outlays. Fiscal year-to-date receipts totaled $1.225 trillion, reflecting a $142 billion increase or 13% from the prior year, while outlays reached $1.827 trillion, up $33 billion or 2% from the previous year.

ReutersUS posts record US$145 billion December deficit as outlays outpace receiptsUS December Deficit Hits Record $145 Billion as Spending Surges

The increase in outlays was driven by higher spending on Social Security and healthcare programs, alongside a $46 billion rise in U.S. Treasury public debt interest, which totaled $355 billion. The Treasury noted that this interest cost increase was largely due to the growing U.S. debt load, with the weighted average interest rate paid by the Treasury in December at 3.32%, slightly above the 3.28% from a year earlier.

ReutersUS posts record US$145 billion December deficit as outlays outpace receipts

Additionally, the December deficit was influenced by the timing of benefit payments. Approximately $32 billion in January 2026 benefit payments were recorded in December due to the New Year starting on a weekend, while $51 billion in benefits originally scheduled for December 2024 were shifted to other months.

US December Deficit Hits Record $145 Billion as Spending Surges

Revenue growth from tariffs implemented during President Donald Trump's administration appears to have plateaued. The Supreme Court is expected to rule on legal challenges to these tariffs, which could further impact customs receipts. The recent tariff-cutting trade deals, including reductions in duties on imports from China and South Korea, may also affect future revenue.

US posts record US$145 billion December deficit as outlays outpace receipts

Critics of the current fiscal policies argue that the record deficit highlights ongoing issues with government spending and revenue generation. The reliance on shifting benefit payments to manage budgetary outcomes raises concerns about the sustainability of such practices.

US December Deficit Hits Record $145 Billion as Spending Surges

• “But ?the $145 ?billion reported deficit was a record for the month, a Treasury official said.” — Treasury Official

Reuters

This comprehensive overview of the U.S. budget deficit for December 2025 underscores the complexities of fiscal management amid changing economic conditions and policy decisions.

US December Deficit Hits Record $145 Billion as Spending Surges