US Budget Gap Narrows in August on Record Customs Receipts

The US government recorded a $345 billion budget deficit in August 2025, falling 9% from a year earlier, according to the Treasury Department. The improvement was largely driven by a surge in customs receipts, which rose by about $22.5 billion due to tariffs imposed by President Donald Trump. With just one month left in the 2025 fiscal year, however, the year-to-date deficit still expanded by $76 billion, or 4%, reaching $1.973 trillion. Government receipts for August climbed $38 billion, or 12%, to $344 billion, while outlays grew $2 billion to $689 billion, both hitting monthly records. Net customs receipts also reached a record $29.5 billion in August, up sharply from $7 billion a year earlier, underscoring the revenue impact of the tariffs. Despite the monthly improvement, the overall fiscal position remains strained by elevated spending and a rising year-to-date shortfall.