FX.co ★ US Budget Gap Widend in December

The U.S. government reported a budget deficit of $144.7 billion in December 2025, a notable increase from the $86.7 billion deficit recorded in December of the previous year. Revenues grew by 6.6% compared to the prior year, totaling $484.4 billion. This growth was primarily fueled by individual income taxes amounting to $242.34 billion, along with social insurance and retirement receipts of $143.16 billion, and customs duties reaching $27.89 billion. These gains reflected seasonal variations and the timing of collections that bolstered tax and customs revenues for the month. Concurrently, expenditures surged by 16.3% year-over-year to $629.1 billion. Major spending areas included Social Security at $144.90 billion, Health and Medicare at $216.54 billion, and national defense allocations of $98.30 billion. Additionally, the timing of several disbursements, such as Medicare and veterans’ benefits, played a significant role in shaping the monthly fiscal outcome.