The U.S. deficit totaled $344.79 billion in August, rising from $291.14 billion in July. For the fiscal year through August, the budget gap totaled $1.97 trillion, the third-highest amount ever for the period—trailing only 2020 and 2021 when spending was elevated to combat the Covid crisis.
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On the bright side, September is usually a significant tax-receipt month, which means that the 2025 fiscal year deficit could narrow. September is also the last month of the fiscal year.
Tariff Revenues Soar to $30 Billion in August
The deficit rose even as August tariff revenue grew for the sixth consecutive month, reaching a yearly high of $30 billion. That marks a 296% year-over-year jump and grew from $28 billion in July.
“Tariffs are generating meaningful new revenue,” said the Committee for a Responsible Federal Budget, adding that it expects $1.3 trillion of new tariff revenue by the end of President Trump’s term. Tariff collections have totaled $172 billion for the 11 months ended August, with Treasury Secretary Scott Bessent flagging a potential $500 billion annual run-rate.
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