The U.S. government logged a rare surplus in June, thanks in part to a jump in tariff revenues that gave federal coffers an unexpected boost, the Treasury Department said Friday.
After running deep in the red all year, Washington pulled in a $27 billion surplus last month, a stark contrast to May’s $316 billion shortfall. That brings the total deficit for the fiscal year so far to $1.34 trillion—up 5% from this point last year. But when adjusting for the calendar, the deficit actually dipped slightly, down about 1%. There are three months left in the government’s fiscal calendar, which ends on September 30.
June’s improved figures were helped by a 13% increase in tax and other receipts compared to a year earlier, while federal spending fell 7% over the same period. For the full fiscal year to date, revenue is up 7%, with spending climbing by 6%.
The last time the government posted a surplus in June was back in 2017, during President Trump’s first year in office.
Now, fresh revenue from Trump’s newly enacted tariffs is helping to ease some of the fiscal pressure. Customs duties brought in $27 billion in June—up from $23 billion in May, and more than triple what was collected in June 2024. Over the past year, tariff revenue has surged 86% to a total of $113 billion.
Trump's April announcement of a blanket 10% tariff on all imports, alongside a set of “reciprocal” trade penalties targeting key partners, has generated windfalls—though negotiations with trade allies remain ongoing.
The Treasury also acknowledged that June’s numbers were flattered by timing quirks. Without those calendar adjustments, the month would have ended with a $70 billion deficit.
Still, debt servicing costs remain a major drag on the government’s bottom line. Interest payments on the $36 trillion national debt totaled $84 billion in June—slightly lower than May, but still the second-largest budget item after Social Security. So far this fiscal year, net interest stands at $749 billion, and is projected to hit $1.2 trillion by year-end.
To ease those pressures, Trump has repeatedly called on the Federal Reserve to slash short-term interest rates. But markets don’t expect a rate cut until at least September, and Fed Chair Jerome Powell has warned that Trump's trade policies—particularly tariffs—could worsen inflation.
Meanwhile, Trump’s recently passed “big beautiful” spending package is expected to tack on another $3.4 trillion to the national debt over the next 10 years, according to estimates from the Congressional Budget Office.