BREAKING: The U.S. government reports a significant drop in its budget deficit, now standing at $95 billion for January 2026. This marks a 26% decrease, or $34 billion, from the previous year, according to the U.S. Treasury Department. The decline is driven by robust revenue gains, including increases in customs duties that have outpaced spending growth.
The latest figures reveal that total receipts for January hit $560 billion, reflecting a $47 billion increase, or 9%, compared to January 2025. Meanwhile, outlays rose to $655 billion, a modest $13 billion increase, representing just 2% growth.
Officials have adjusted the deficit figures for calendar shifts due to holidays and weekends, indicating that the adjusted deficit would amount to just $30 billion, a striking 63% decline from January 2025. The Treasury emphasizes that while January’s receipts and outlays set new monthly records, the deficit itself did not reach a record high.
As the fiscal year progresses, the first four months of the 2026 fiscal year, which began on October 1, show a cumulative deficit of $697 billion, down $143 billion or 17% from the same period in fiscal 2025. Year-to-date receipts total $1.785 trillion, up $188 billion or 12%, while total outlays reached $2.482 trillion, a rise of $46 billion or 2%.
A key factor in these results is the sharp increase in net customs receipts, bolstered by tariffs implemented during President Donald Trump’s administration. Customs duties for January amounted to $27.7 billion, maintaining a level consistent with December while slightly below the $30 billion monthly pace observed late last year. In stark contrast, January 2025 saw customs duties at just $7.3 billion.
Additionally, the deficit was positively impacted by a rare decline in Treasury interest outlays, which fell by $12 billion to $72 billion for January. This decrease resulted from adjustments to payments on inflation-linked securities that were delayed due to last year’s government shutdown and updated consumer price index data. Year-to-date interest on the public debt has reached a record $426 billion, up $34 billion or 9% compared to the previous year.
These developments underscore a significant shift in fiscal management, with implications for both economic policy and public finances moving forward. As the government navigates these changes, all eyes will be on the Treasury’s upcoming reports for further insights.
Stay tuned for more updates as this situation develops.
