The U.S. government drifted further into red ink during May, with a burgeoning debt and deficit issue getting worse, the Treasury Department reported Wednesday.
After running a short-lived surplus in April thanks to tax season receipts, the deficit totaled just over $316 billion for the month, taking the year-to-date total to $1.36 trillion.
The annual tally was 14% higher than a year ago, though the May 2025 total was 9% less than the May 2024 shortfall.
Surging financing costs were again a major contributor to fiscal issues, with interest on the $36.2 trillion debt topping $92 billion. Interest expenses on net exceeded all other outlays except for Medicare and Social Security. Debt financing is expected to run above $1.2 trillion for this fiscal year, totaling $776 billion through the first eight months of the fiscal year.
Tax revenue has not been the problem. Receipts rose 15% in May and are up 6% from a year ago. Expenditures increased 2% monthly and are up 8% from a year ago.
