The US government recorded a $316 billion budget deficit in May, down 9% from a year earlier, driven in part by a surge in customs receipts to a record $23 billion due to new tariffs imposed by President Trump. Gross customs receipts jumped from $6 billion in May 2024, as the tariffs on imports from most trading partners increased port-of-entry collections. Year-to-date customs revenue rose nearly 60% to $86 billion. This boost helped push May’s total receipts up 15% year-over-year to $371 billion, while outlays increased to $687 billion. After adjusting for calendar shifts related to June benefit payments, the adjusted May deficit was $219 billion - a 17% drop from the comparable figure in 2024. Interest on the national debt, the government’s largest expense, also fell 10% from a year earlier to $92 billion - the first decline since October.