US deficit falls as sharp education cuts mask rising Social Security and healthcare costs
The US federal budget deficit fell by $41 billion to $1.775 trillion in fiscal 2025, driven by record customs revenue from tariffs and steep cuts to education spending, even as healthcare, Social Security, and debt interest rose. Analysts warn that without structural reforms, the modest decline may be temporary, highlighting ongoing challenges in achieving long-term fiscal sustainability.
The US federal budget deficit fell by $41 billion to $1.775 trillion in fiscal 2025, driven by record customs revenue from tariffs and steep cuts to education spending, even as healthcare, Social Security, and debt interest rose. Analysts warn that without structural reforms, the modest decline may be temporary, highlighting ongoing challenges in achieving long-term fiscal sustainability.
