The U.S. government has reported a record budget deficit of $145 billion for December, marking a significant increase. This figure is up 67% or $58 billion compared to December of the previous year. The increase is attributed to unprecedented spending, influenced by timing shifts in benefit payments and revenue collection.
Key Financial Insights
The Treasury Department released details indicating that government spending levels surged during the month. Notably, December saw net customs receipts drop to $27.9 billion from previous highs. This is a noticeable decline from the $30 billion range seen in recent months and represents a significant increase from the $6.8 billion recorded in December 2024.
Fiscal Year Overview
As the fiscal year progresses, the first three months of fiscal 2026, beginning on October 1, show a total deficit of $602 billion. This figure reflects a reduction of $109 billion or 15% compared to the same period from the previous year, despite high levels of income and expenditure.
- December 2025 Deficit: $145 billion
- Year-over-Year Increase: 67% ($58 billion)
- Customs Receipts for December: $27.9 billion
- Fiscal 2026 Deficit (First Quarter): $602 billion
- Fiscal 2026 Reduction from Last Year: 15% ($109 billion)
Benefit Payments Shifts
In December, adjustments were made to reflect shifts in benefit payments due to calendar changes. Approximately $32 billion in January benefit payments were accounted for in December, as the New Year commenced on a weekend. Additionally, $80 billion in benefit payments originally scheduled for December 2024 were moved to November of that year.
This restructuring of payments contributed significantly to the record deficit for December, emphasizing the importance of timing in government financial reporting. Overall, the U.S. is navigating complex fiscal challenges as it adjusts to changing revenue and expenditure patterns.
