US Treasury Posts $120 Billion Deficit in June, Deteriorating from Surplus

The US Treasury posted a $120 billion deficit in June, a sharp deterioration from a $27 billion surplus recorded in June 2025, according to monthly data.

Government receipts fell $31 billion year-over-year to $496 billion. The decline was largely driven by a surge in tariff refund payments after the Supreme Court ruled recent tariff increases illegal, resulting in a net $26 billion decrease in customs duty receipts.

Meanwhile, outlays surged $117 billion year-over-year to $616 billion.

In the first nine months of fiscal year 2026, the deficit increased $29 billion from the same period last year to $1.37 trillion, making it the third-highest deficit at this point in the fiscal year on record.

Net interest expense rose $78 billion year-over-year to $827 billion, on track for the highest annual net interest expense on record.