The US debt and deficit have worsened significantly during President Donald Trump’s first month in office. The budget shortfall for February surpassed $1 trillion, exceeding expectations despite not being halfway through the fiscal year.
Government spending has eased slightly compared to January, but it still outpaces revenue. The deficit stood at over $307 billion, nearly 2.5 times what it was in January and 3.7% higher than February 2024.
Revenue records were also set for the month, according to a Treasury Department statement. For the first five months of fiscal 2025, the total deficit reached $1.15 trillion, representing a 38% increase from the same period last year and setting a record.
The national debt stands at $36.2 trillion, with net costs to finance it edging lower to $74 billion for February. However, the total net interest payments rose to $396 billion, surpassing national defense and health.
Social Security and Medicare are the largest expenses in the US budget. The deficit increased during the final three years of former President Joe Biden’s term, growing from $1.38 trillion to $1.83 trillion.
President Trump aims to reduce government spending by implementing efficiency measures, including job cuts and early retirement incentives. However, think tanks warn that extending the Tax Cuts and Jobs Act could add up to $3.3 trillion to the deficit over the next decade.
Source: https://www.cnbc.com/2025/03/12/us-budget-deficit-surged-in-february-passing-1-trillion-for-new-year-to-date-record.html