US December Budget deficit $145B vs $150B estimate

• U.S. December budget deficit was $145B, versus $150B expected and $87B in December 2024

• U.S. December budget outlays were $629B, up from $541B in December 2024 – Treasury

• U.S. December budget receipts were $484B, down from $454B in December 2024

• U.S. December net customs receipts were $27.89B

• U.S. fiscal 2026 year-to-date deficit is $602B, compared with $711B for the same period in fiscal 2025

SUMMARY:

The U.S. ran a $145 billion budget deficit in December, slightly smaller than the $150 billion expected, but sharply wider than the $87 billion deficit recorded in December last year. The deterioration YoY was driven by a surge in federal spending, with outlays hitting a record $629 billion for the month, compared with $541 billion a year earlier. At the same time, government receipts totaled $484 billion, up from $454 billion last year, but the increase in revenue was not enough to keep pace with spending growth.

One bright spot came from customs receipts, which reached $27.9 billion, reflecting the impact of higher tariffs and import activity. On a broader fiscal basis, however, the government is still running very large deficits. Fiscal 2026 year-to-date borrowing now totals $602 billion, though that is better than the $711 billion deficit recorded over the same period in fiscal 2025.

Bottom line: Spending is accelerating faster than revenue, keeping deficits large even as tariff income helps on the margin — a backdrop that continues to support higher Treasury supply and structural pressure on U.S. debt levels.

Meanwhile, Trump is speaking in front of the Detroit Economic Club. It is the “Best of” so far.

This article was written by Greg Michalowski at investinglive.com.