Overview
- Treasury’s March report, released Friday, showed $385 billion in revenue and $549 billion in spending, with larger tax refunds from new breaks pushing the shortfall higher.
- Military outlays rose only $2 billion to $65 billion in March, and Treasury officials said replenishing weapons and other war costs will show up later.
- Customs duty receipts fell to $22.2 billion in March after the Supreme Court annulled broad global tariffs, and collections that are paid a month late could weaken further.
- For the first six months of fiscal 2026, the deficit fell 11% year over year to $1.169 trillion as stronger payroll and individual taxes offset rising costs for Social Security, health programs, and interest.
- Treasury noted that monthly figures can swing with timing effects, so the apparent lull in defense spending and the shift in tariff revenue may not reflect the full costs yet.