The federal government's budget deficit reached $2 trillion for the current fiscal year as the deficit has widened by nearly $100 billion from last year.

The nonpartisan Congressional Budget Office (CBO) released its monthly budget update for August, which showed the deficit reached $1.989 trillion in the first 11 months of fiscal year 2025. That amounts to a $92 billion increase in the deficit when compared with the first 11 months of fiscal year 2024.

Overall, federal spending was up by $391 billion from a year ago, an increase of 5%, while tax receipts rose $299 billion, or 7%, in the first 11 months of fiscal year 2025.

The increase in federal tax receipts was largely attributable to the Trump administration's tariffs , which increased import taxes for many goods since Feb

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