Tariff-driven gains help keep deficit under last year's pace through February

The U.S. deficit totaled $1.004 trillion through February, about 12% below the year-ago pace as faster revenues narrowed the gap; February alone posted a $308 billion shortfall. Customs duties rose to $151 billion in the first five months (up 294% year over year), helping offset a 17% drop in corporate tax receipts. Net interest payments on the roughly $39 trillion debt were $79 billion in February. The data may reflect timing on tariffs and possible refunds, with higher rates continuing to weigh on the fiscal outlook as the debt nears $39 trillion.