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U.S. Posts Record $145 Billion December Deficit as Outlays Hit New High

Treasury says calendar-shift adjustments put the month’s shortfall at $112 billion, showing underlying improvement from 2024.

U.S. dollar banknotes are displayed in this illustration taken, February 14, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Overview

  • Federal outlays reached a record $629 billion in December against $484 billion in receipts, producing the $145 billion gap.
  • Treasury reported that $32 billion of January 2026 benefits were paid in December, while about $80 billion of December 2024 benefits were paid in November, inflating the year-over-year comparison.
  • On a comparable basis after timing adjustments, the December shortfall would have been $112 billion, an 11% decrease from a year earlier.
  • For the first quarter of fiscal 2026, the deficit totaled $602 billion, down 15% from the same period in fiscal 2025.
  • Net customs receipts were $27.9 billion in December, far above December 2024 but slightly below recent months, with fiscal-year-to-date customs revenue at $90 billion versus $20.8 billion a year earlier.