URGENT UPDATE: The U.S. budget deficit has decreased by 2.2%, but remains a staggering $1.78 trillion for fiscal year 2025. The latest figures from the U.S. Treasury, released today, reveal a $41 billion reduction in the deficit compared to the previous year, thanks largely to unprecedented tariff revenues.
In a significant financial shift, revenue from President Trump’s tariffs surged to $200 billion, marking an astounding increase of over 140% from 2024. This influx has helped alleviate some of the burdens posed by skyrocketing interest payments on the nation’s colossal $38 trillion debt.
Interest costs have now reached a record $1.2 trillion, surpassing defense spending and trailing only Social Security and Medicare. As of the end of September 2025, the U.S. government collected a total of $5.2 trillion in revenue while expenditures exceeded $7 trillion.
Despite these alarming numbers, the deficit-to-GDP ratio is projected to dip to 5.9%, the lowest level since 2022. Treasury Secretary Scott Bessent stated, “The U.S. is on its way” to mitigating its debt burden, suggesting a cautious optimism about future fiscal policies.
While the latest data indicates a slight improvement in the deficit and record tariff revenue, the reality remains stark. The fiscal landscape is still deeply in the red, leaving many Americans concerned about the long-term implications for economic stability and growth.
This latest development is crucial as it impacts not only government spending but also the overall economic health of the nation. The U.S. economy is navigating a complex landscape, and these numbers are a reminder of the ongoing challenges faced by policymakers.
Stay tuned for further updates as this story develops. From the New York Stock Exchange, this is Caroline Woods reporting for TheStreet.
