US June Budget Deficit Hits $120 Billion

The U.S. Treasury Department reported that the federal budget deficit for June reached $120 billion. This marks a sharp decline from June 2025, when the government recorded a $27 billion surplus.

A primary driver of the deficit was a net outflow of $25.6 billion resulting from tariff refunds. While the government collected $23.6 billion in gross customs duties, it issued $49.2 billion in refunds for tariffs previously imposed by President Donald Trump.

Financial pressures were further compounded by a 28% increase in gross interest outlays for public debt, which rose to $185 billion. Total receipts for the month fell 6% to $496 billion, while total outlays climbed to $616 billion.

For the current fiscal year to date, the deficit has increased 2% to $1.367 trillion. Total outlays for the period have reached $5.518 trillion against receipts of $4.151 trillion.