US Budget Gap Narrows in November

The US government recorded a $144.7 billion budget deficit in December 2025, compared with a $86.7 billion deficit in the same month a year earlier. Receipts rose 6.6% year on year to $484.4 billion, driven by individual income taxes ($242.34 billion), social insurance and retirement receipts ($143.16 billion), and customs duties ($27.89 billion). The increase reflected seasonal and collection timing effects that supported tax and customs receipts in the month. Meanwhile, outlays rose 16.3% year on year to $629.1 billion, with Social Security ($144.90 billion), Health and Medicare ($216.54 billion), and national defense ($98.30 billion) the largest spending categories, while the timing of several payments, including Medicare and veterans’ benefits, influenced the monthly outturn.

The US government recorded a $173.3 billion budget deficit in November 2025, compared with a $366.8 billion deficit in the same month a year earlier. Receipts rose 11.4% year-on-year to $336.0 billion, driven by individual income taxes ($146.96 billion), social insurance and retirement receipts ($134.29 billion), and customs duties ($30.76 billion). The increase reflected seasonal and collection-timing effects that lifted tax and customs receipts in the month. Meanwhile, outlays fell 23.8% year-on-year to $509.3 billion, with Social Security ($133.97 billion), Health/Medicare ($25.10 billion) and national defense ($65.48 billion) the largest spending categories; several payments (including Medicare and veterans’ benefits) affected the timing of outlays.

The US government recorded a $284.4 billion budget deficit in October 2025, compared with a $257.5 billion deficit in the same month a year earlier. Receipts rose 23.8% year-on-year to $404.4 billion, driven by individual income taxes ($216.95 billion), social insurance and retirement receipts ($123.85 billion), and customs duties ($31.35 billion). The increase reflected seasonal and collection timing effects that lifted tax and customs receipts in the month. Meanwhile, outlays rose 17.9% to $688.7 billion, with Medicare ($150.56 billion), Social Security ($134.14 billion), and national defense ($99.94 billion) the largest spending categories; several payments (including Medicare and veterans’ benefits) accelerated into October because the normal November payment date fell on a non-business day.