May Treasury Budget

Updated: 10-Jun-26 14:21 ET

Highlights

• The Treasury Department reported a $292.6 billion deficit for May ( consensus: $202.5 bln), which was $23 billion less than the deficit reported for May 2025.
• Receipts totaled $335.5 billion, while outlays reached $628.2 billion.

Key Factors

• Social Insurance & Retirement ($157 billion) was the largest source of receipts in May, followed by individual income taxes ($152 billion). Customs duties decreased by $42 million.
• The largest outlays by function were Social Security ($140 billion), Net Interest ($107 billion), Medicare ($87 billion), Health ($82 billion), and National Defense ($73 billion).
• The fiscal year-to-date deficit is $1.25 trillion versus $1.36 trillion in the same period a year ago.
• The budget deficit over the last 12 months is $1.657 trillion versus $1.680 trillion in April.

Big Picture

• The key takeaway from the report, for some, will be the decline in customs duties as tariff refunds exceeded tariff collections, but even more important is the continued increase in the outlay for net interest ($107 billion), which was 47% more in May than the outlay for national defense.