US Budget Gap Shrinks in January

The United States government recorded a $307.5 billion budget deficit in February 2026, compared with a $296.3 billion deficit in the same month a year earlier. Receipts fell 43.9% from the prior month to $313.3 billion, driven by individual income taxes ($133.4 billion), social insurance and retirement receipts ($144.4 billion), and customs duties ($26.6 billion). The monthly total reflected a normalization of tax collections following seasonal peaks and specific adjustments in corporate and miscellaneous receipts. Meanwhile, outlays fell 5.1% from the prior month to $620.8 billion, with Social Security ($138.4 billion), Health and Medicare ($155.6 billion), and national defense ($71.1 billion) the largest spending categories, while spending totals were influenced by the acceleration of certain benefit payments into February because March 1 fell on a non-business day.

The US government recorded a $94.6 billion budget deficit in January 2026, compared with a $128.6 billion deficit in the same month a year earlier. Receipts rose 9.1% year on year to $559.9 billion, driven by individual income taxes ($317.30 billion), social insurance and retirement receipts ($169.80 billion), and customs duties ($27.74 billion). The increase reflected seasonal and collection timing effects that supported tax and customs receipts in the month. Meanwhile, outlays rose 2.0% year on year to $654.6 billion, with Social Security ($143.55 billion), Health and Medicare ($217.09 billion), and national defense ($70.75 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 $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.