US budget deficit drops to 95 billion dollars in January as revenue gains outpace spending

The U.S. budget deficit fell to 95 billion dollars in January as tariff revenue gains outpaced spending. Higher customs duties helped narrow the fiscal gap.

The US USUS government reported a $95 billion budget deficit for January 2026, representing a 26 percent decline from the same month a year earlier. According to data released by the U.S. Department of the Treasury on February 11, 2026, the monthly shortfall decreased by $34 billion compared to January 2025. This narrowing of the deficit occurred as strong revenue gains outpaced the growth in federal outlays, leading to a shift in the nation's short-term fiscal balance.
A general view as day breaks over the U.S. Capitol in Washington, D.C., U.S., November 18, 2025. REUTERS/Jonathan Ernst
A general view as day breaks over the U.S. Capitol in Washington, D.C., U.S., November 18, 2025. REUTERS/Jonathan Ernst
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