Trump still has some major problems to deal with.
A new Congressional Budget Office (CBO) report has revealed a shocking truth — even with billions in extra revenue from President Trump’s tough tariffs on foreign imports, Washington is still drowning in record debt thanks to out-of-control spending.
Deficit Soars Past $1.6 Trillion
In the first 10 months of fiscal year 2025, the U.S. budget deficit has already hit $1.6 trillion, according to the CBO. That’s $109 billion higher than the same period last year — a devastating blow to taxpayers already feeling the pinch of inflation and rising interest rates.
Tariffs Deliver Massive Revenue Surge
Federal tax receipts jumped $263 billion, a 6% increase. Customs duties alone skyrocketed 112%, bringing in $70 billion more this year — a direct result of Trump’s aggressive trade policies designed to put America first and force foreign competitors to play fair.
Spending Out of Control
But even historic tariff gains couldn’t offset the explosion in federal spending. Washington shelled out $372 billion more than last year — a 7% jump. The biggest drivers:
- Social Security costs surged $102 billion, fueled by inflation-based COLA increases and a growing retiree population.
- Medicare spending spiked $58 billion from higher service costs and more enrollees.
- Medicaid costs jumped $47 billion due to rising per-patient expenses.
Debt Payments Eating Taxpayer Dollars
America’s nearly $37 trillion national debt is now costing taxpayers $60 billion more in interest payments — money that goes straight to creditors, not to veterans, infrastructure, or border security.
July Deficit Alone Hits $289 Billion
In July 2025, the deficit was $289 billion, up $45 billion from July 2024, as Washington spent far more than it collected. Even June’s small $27 billion surplus barely made a dent in the red ink.
The Bottom Line
The numbers prove it: Trump’s tariffs are boosting U.S. revenue like never before, but unchecked Biden-era spending commitments on massive entitlement programs and interest payments are driving America deeper into debt. Without serious fiscal discipline, the burden on seniors, savers, and future generations will only grow heavier.