Overview
- The CBO’s Monthly Budget Review estimates a $1.809 trillion shortfall for FY2025, about $8 billion smaller than FY2024, with total debt around $37.86 trillion.
- Net interest payments surpassed $1 trillion for the first time as a larger debt stock met prevailing market rates.
- Total receipts rose roughly 6% ($308 billion); customs duties reached $195 billion under expanded tariffs, while corporate tax revenue fell due in part to new 2025 deductions in the One Big Beautiful Bill Act.
- Spending increased by $301 billion, led by Social Security (+$121 billion), Medicare (+$72 billion), Medicaid (+$52 billion), Defense (+$38 billion) and Veterans Affairs (+$41 billion).
- Budget watchdog CRFB labeled the shutdown “pointless and wasteful” and urged reopening without new borrowing, tighter budget rules including a stronger PAYGO, and a bipartisan fiscal commission targeting deficits near 3% of GDP.