Customs duties increase in addition to expenditure reductions, the US fiscal deficit has narrowed for the fourth consecutive month.

The latest data from the US Department of Treasury shows that, due to the combined effect of increased tariff revenue and significant cuts in spending in areas such as education and environmental protection, the fiscal deficit of the US federal government has narrowed for the fourth consecutive month. According to data released by the US Department of Treasury on Wednesday, in January, federal government spending exceeded income by about $30 billion, significantly lower than the deficit of $82 billion in January 2025. At the same time, the fiscal deficit in December, November, and October of last year also narrowed by 11%, 6%, and 29% respectively compared to the same period the previous year. The above data have all been adjusted for timing differences in receipts and payments caused by holidays or weekends. From an overall trend perspective, the slowdown in spending growth is an important reason for the improvement in the deficit. Since the start of this fiscal year in October of last year, US government revenue has increased by about 12% compared to the same period last year, while spending has only increased by 1%. In specific projects, several federal agencies have experienced significant budget cuts. Taking the Consumer Financial Protection Bureau as an example, the agency is responsible for combating illegal debt collection and other activities that infringe on consumer rights. Under the Trump administration, the total spending of the agency in the first four months of this fiscal year has dropped to $160 million, compared to $2.28 billion in the same period last year, mainly due to reductions in personnel and enforcement activities. Spending in the education sector has also significantly decreased. A senior official from the US Department of Treasury stated that due to reduced funding for the Office of Elementary and Secondary Education, education-related spending has decreased by 19% this year. At the same time, the environmental protection sector has also faced cuts, with the total spending of the Environmental Protection Agency in the current fiscal year so far at $5.72 billion, much lower than the $26 billion in the same period last year. Improvements on the revenue side mainly come from tariffs. Data shows that tariffs have brought in $124 billion in customs revenue for the federal government this fiscal year, compared to only $31 billion in the same period last year. However, there is still uncertainty about the legality of the tariff policy, and the US Supreme Court is expected to soon make a ruling on the legality of the Trump administration's tariff measures.