12-Month Rolling Deficit is $1.7 Trillion in Calendar Year 2025

The federal budget deficit totaled $1.7 trillion in Calendar Year (CY) 2025, according to estimates from the Congressional Budget Office (CBO). The deficit in CY 2025 is $369 billion less than the $2.0 trillion deficit in CY 2024.

CBO estimates that the December 2025 deficit totaled $143 billion – the difference between $627 billion in spending and $484 billion in revenues. Revenue collections of income and payroll taxes were $36 billion more than December 2024 and custom duties were $22 billion more. Corporate income tax revenue was $28 billion less than December 2024. Spending was $86 billion higher in December 2025 than December 2024, but that was largely due to timing shifts where payments were due on weekends; adjusted for timing shifts, outlays were virtually unchanged from December 2024 to December 2025.

Total nominal revenue was $5.4 trillion in CY 2025, compared to $4.9 trillion in CY 2024; total nominal spending was $7.0 trillion, compared to $6.9 trillion the same period prior. 

We estimate the $1.7 trillion rolling deficit is 5.4% of Gross Domestic Product.