The U.S. budget deficit continued to widen in April despite a surge in tariff collections and a strong seasonal boost from tax filings, according to new data released by the Treasury Department.
- Customs duties brought in a record $16.3 billion during April, up 86% from March and more than double the $7.1 billion collected in April 2024.
- That brought the fiscal year-to-date total to $63.3 billion—an 18% increase over the same period last year.
Surplus: The influx of tariff revenue and individual income taxes ahead of the April 15 filing deadline helped push the monthly budget surplus to $258.4 billion, a 23% increase over last April.
- Still, the improvement was not enough to meaningfully slow the overall growth in the federal deficit.
Rising Deficit: As of the end of April, the deficit stood at $1.05 trillion, 13% higher than the same point last year. Year-to-date government receipts were up 5%, while spending climbed 9%, outpacing revenue growth and keeping the fiscal trajectory under pressure.
Rising Rates: One of the largest contributors to the widening gap is rising interest costs. Net interest payments on the $36.2 trillion national debt hit $89 billion in April alone, exceeding every other spending category except Social Security.
Impact On Rates: It is going to be rates to fall significantly with the US forced to issue so much debt.
