US March budget deficit rises slightly to $164 billion, war outlays delayed
The U.S. federal government said the March budget deficit rose $4 billion, or 2%, to $164 billion from a year earlier, as new individual and corporate tax breaks drove refunds sharply higher and relief payments to farmers increased, the Treasury said Friday.
The data showed no major rise in Iran war spending, with military and defense outlays up $2 billion, or 3%, to $65 billion in the first month. A Treasury official said many war-related costs, such as replenishing weapons, will come later.
Customs duty collections softened after the Supreme Court annulled President Donald Trump’s broadest global tariffs under an emergency law. Receipts were $22.2 billion in March, down from $26.6 billion in February and from monthly totals in the low $30 billion range late last year, but up from $8.2 billion in March 2025.
March receipts totaled $385 billion, up $17 billion, or 5%, from a year earlier, while outlays were $549 billion, up $21 billion, or 4%. After calendar-related adjustments to benefit payments, the deficit would have been $250 billion, up $9 billion, or 4%, from March 2025.
