The U.S. federal budget %Deficit increased significantly in the first fiscal quarter, jumping almost 40 percent from a year earlier. While the December figure showed a 33 percent improvement, the deficit grew by $200 billion year over year. The increase brings the first three months of the fiscal year to $710.9 billion, driven by increased financing costs and spending combined with lower tax receipts. The December deficit was $87 billion.
The national debt exceeded $36 trillion, with the deficit at $2 trillion. Spending rose 11 percent in the first quarter, while receipts dropped 2 percent compared to last year. So far, for fiscal year 2025, interest on the national debt has reached $308.4 billion, a 7 percent increase year-over-year. Full-year financing costs are estimated to surpass $1.2 trillion and projected to exceed 2024’s record. This year, government spending on interest payments has been higher than in all categories except Social Security, defense, and healthcare.
National debt interest payments hit $308.4 billion in the first quarter, up 7 percent year-over-year. Full fiscal year financing costs for 2025 are projected to top $1.2 trillion, exceeding 2024’s record.
