US Books Bigger September Surplus, Fiscal Gap Narrows
2025-10-17 10:00
By
Joana Taborda
1 min. read
The US government recorded a $198 billion budget surplus in September 2025, up sharply from an $80 billion surplus in the same month last year.
Receipts rose 3.3% yoy to $543.6 billion, driven by individual income taxes ($298 billion), social security and retirement contributions ($134 billion), and corporate income taxes ($62 billion).
The increase reflected the seasonal boost from large quarterly corporate and individual tax payments, which typically arrive in mid-September.
Meanwhile, outlays fell 22.6% to $345.7 billion, with social security ($133 billion), health ($94 billion), and national defense ($76 billion) accounting for the largest spending categories.
For the fiscal year ending September, the budget deficit narrowed by $41 billion to $1.775 trillion, marking the first annual decline since 2022.
The improvement was largely due to record tariff revenues ($194.9 billion vs $77 billion), and significant cuts in education spending ($34.7 billion vs $267.9 billion).