The US Treasury budget deficit fell by 26% year-over-year in January, reducing it to $95 billion. This decline is part of a trend over the first four months of FY2026, during which the deficit decreased by 17% year-over-year to $697 billion, marking the third-worst start to a fiscal year in history. The decrease in the deficit can be attributed to a 12% rise in government revenue, reaching $1.8 trillion, largely due to a 304% surge in tariff revenues. These tariffs are part of expanded US trade policies initiated under President Trump’s administration, which aim to bolster domestic industries and government revenue through increased import duties. Government expenditures also grew by 2% year-over-year, totaling $2.5 trillion.
US Treasury deficit falls 26% YoY in January to $95B
