The U.S. federal budget deficit surged during the first quarter of fiscal 2025, climbing nearly 40% higher than last year. The Treasury Department reported a shortfall of over $80 billion for December, a 33% decline from December 2024. Increased financing costs, growing spending, and declining tax receipts have contributed to the widening deficit, pushing the national debt past $36 trillion. Interest on the national debt has exceeded $300 billion so far, up 7% from last year, and is projected to exceed $1.2 trillion by year-end.
