U.S. budget deficit edged lower in 2025 as tariffs, debt payments both saw new records

Government

The U.S. budget deficit edged lower for 2025 as record-setting tariff collections helped offset what also were unprecedented numbers for payments on the spiraling national debt, the Treasury Department announced Thursday. In a year marked by a bruising trade war and high financing costs, the federal government managed to escape with a $1.78 trillion shortfall, some $41 billion, or 2.2%, less than in fiscal 2024. While that's still on the high end historically, the red ink would have been still

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