The U.S. government reported a $258 billion budget surplus for April 2025, a 23% increase from the same month last year, fueled by a surge in tax payments and record-high customs duties, the Treasury Department announced Monday.
April, typically the most lucrative month for federal revenue due to the tax filing deadline, saw individual non-withheld tax payments rise 16% to $460 billion. Individual tax refunds also increased by 16%, reaching $86 billion, contributing to total monthly receipts of $850 billion.
Customs duties reached an all-time high of $16 billion for the month, up from $7 billion a year earlier. The increase came during a period in which President Donald Trump imposed sweeping new tariffs — up to 145% on Chinese goods and at least 10% on imports from other countries. That resulted in average daily tariff collections of over $500 million. Trump had previously claimed tariff collections reached $2 billion daily.
The new tariff revenue may be temporary. Over the weekend, the U.S. and China agreed to ease their respective duties.
The U.S. will lower tariffs on Chinese goods to 30% for the next 90 days, while China will cut its tariffs on U.S. imports to 10% from 125%.
Despite April’s surplus, the federal budget remains in deficit for the year. The Treasury reported a $1.049 trillion deficit for the first seven months of fiscal 2025, which began on October 1. That figure is up 23%, or $194 billion, from the same period a year earlier.
Fiscal year-to-date receipts rose 5% to a record $3.110 trillion, driven largely by a 6% increase in paycheck tax withholdings, which totaled $2.145 trillion. Outlays reached a record $4.159 trillion, a 9% increase over the prior year.
Spending rose across several major entitlement programs. Medicare outlays climbed 16% to $658 billion, Medicaid rose 6% to $378 billion, and Social Security grew 9% to $945 billion. Interest payments on federal debt also surged 10% year-over-year to $684 billion, with the average interest rate reaching 3.29%, up 6 basis points from last year.
Treasury officials noted that adjusted figures accounting for calendar differences and deferred tax receipts would put the fiscal year-to-date deficit about 4% higher.
