Current Federal Debt and Deficit
Every month, the U.S. Treasury releases data on the federal budget, including the current deficit or surplus. The following contains budget data for June 2025, the ninth month of fiscal year (FY) 2025.
Current Federal Deficit
$27B
Federal Budget Surplus for June 2025
$71B
Federal Budget Deficit for June 2024
The federal government reported a surplus of $27 billion in June 2025, a decrease of $98 billion from the $71 billion deficit recorded in June 2024. However, June 1 fell on a Saturday in 2024 and 2025, causing certain payments to be shifted into the respective previous months. Adjusting for those timing shifts, the federal government would have reported a deficit of $70 billion in June 2025, which would have been $94 billion less than the same month in the previous year.
Spending in June 2025 was $37 billion less than in June last year. Adjusting for the timing shifts, spending was $32 billion less than last year’s corresponding total. Driving that decrease was a $79 billion decline in outlays by the Department of Education due to a $74 billion increase in estimated student loan costs incurred last June, but not in June 2025. Partially offsetting that decrease were increases in other categories: Social Security outlays (up $12 billion compared to June 2024), Veterans Affairs ($6 billion), and Medicare ($5 billion). Receipts were up by $61 billion in June 2025 compared to the previous year – individual income and payroll taxes increased by $55 billion, customs duties collections rose by $18 billion, while corporate income taxes fell by $13 billion.
Cumulative Federal Deficit
$1.3T
Cumulative FY25 Deficit
$1.3T
Cumulative FY24 Deficit (through June 2024)
Through the first nine months of the fiscal year, the cumulative deficit was $64 billion above last year’s level. However, October 1, 2023, fell on a weekend, thereby causing certain federal payments to be shifted into the previous fiscal year (FY23) and artificially reducing the deficit in FY24. Without that effect, the deficit for FY25 through the end of June would have been $8 billion less than last year’s adjusted total.
For the first nine months of FY25, total outlays were $5.3 trillion, $318 billion higher than the same period in the previous year. Adjusting for the timing shifts, spending was $245 billion above the same period last year. That increase was driven mainly by three categories: Social Security spending was up by $92 billion, stemming from cost-of-living adjustments and some retroactive payments; net interest rose by $66 billion; and Medicare outlays increased by $50 billion (adjusted for timing shifts). Partially offsetting those and other increases was a $100 billion decrease by the Department of Education related to the June 2024 loan estimation adjustment and a $66 billion decrease in outlays by the Federal Deposit Insurance Corporation related to the resolution of bank failures that occurred last year.
Revenues through the first nine months of FY25 were $254 billion above collections from a year ago, driven by a $174 billion increase in individual income taxes. Receipts were boosted last year by deferred collections of payments from taxpayers in locations that suffered natural disasters. If not for those postponed payments (about $35 billion), the difference in revenues in the first nine months of 2025 relative to the prior year would have been larger. In addition, customs duties were higher in 2025 by $52 billion, mostly because of higher tariffs, and payroll taxes were up by nearly $41 billion.
National Debt
$28.9T
Debt Held by the Public at the end of June 2025
$27.5T
Debt Held by the Public at the end of June 2024
Fiscal year 2025 at its three-quarters mark shows an annual deficit that is above last year's total to date. The federal debt is approaching its post-World War II high as a percentage of gross domestic product and is on track to continue rising rapidly, which is unsustainable. The nation’s unsustainable outlook argues for bipartisan solutions that will “do no fiscal harm.”