The U.S. fiscal deficit exceeded $1.3 trillion in the first half of the year, and interest payments on debt hit a record high.

Data released by the US Treasury Department on Thursday shows that the federal fiscal deficit for the first half of the 2025 fiscal year (October 2024 to March 2025) reached $1.307 trillion, the second highest deficit in US history for that period, only surpassed by the $1.706 trillion deficit in the first half of the 2021 fiscal year. In comparison, the deficit for the same period in the 2024 fiscal year was slightly over $1 trillion before adjustments, and $1.14 trillion after calendar adjustments. One of the key reasons for the widening deficit this time is the record high interest payments on the public debt by the federal government. The data shows that interest payments on the public debt by the federal government reached $582 billion, an increase of $60 billion from the same period last year, setting a new record. Treasury Department officials noted that the weighted average interest rate on US debt over the past four months remained at 3.28%, almost the same as the 3.30% in October and November of last year. However, with the total debt continuing to grow, interest payments are also on the rise. In addition to interest payments, spending on military programs, healthcare, social security, and the Department of Veterans Affairs has also increased, contributing to the expansion of the deficit. In March alone, the US government spent $244 billion more than its income on an adjusted basis, an increase of $24 billion from the same period last year. Without adjustments, the deficit in March was slightly lower than last year. As trade policy becomes a focus of attention, the market is closely watching the budget item of "customs duties." This category not only includes tariffs, but also covers inspection fees and other expenses. In March, the US Treasury Department reported total customs duty revenue of $8.749 billion, an increase of about $2 billion from the same period last year. Treasury Department officials said, "This reflects some growth in tariffs." This week, President Trump claimed that the US is earning $2 billion a day through customs duties. The monthly report from the Treasury Department shows that most budget items saw an increase in spending compared to last year. The situation where US fiscal spending far exceeds income has been going on for many years, causing widespread concern among fiscal hawks and bond market investors. Creditors, acting in their own interests, do not welcome excessive spending as it could threaten the borrower's ability to repay interest and principal on time in the future. However, there were also a few items with reduced spending. The Department of Education was one of the rare agencies with a decrease in spending. Officials stated that spending decreased by 2% compared to last year, mainly due to a decrease in investment in elementary and secondary education. This trend was also evident last month and stood out as a "unique case" in the entire budget report. The "Government Efficiency Department" led by Tesla, Inc. (TSLA.US) CEO Musk is dedicated to reducing government spending, but the Treasury Department has refused to comment on its actual effectiveness. At present, overall government spending in the US remains strong and shows no obvious signs of decline.