U.S. Posts $164B March Deficit as Receipts Hit Record

The U.S. government recorded a $164 billion budget deficit for March 2026, the Treasury reported. Monthly receipts reached a March record of $385 billion and outlays rose to $549 billion. The fiscal year-to-date deficit stood at $1.169 trillion, down 11% from $1.307 trillion in the same period a year earlier. The prior month's reported deficit was $308 billion.

The March shortfall exceeded the $156.75 billion estimate and was roughly in line with the $161 billion deficit recorded in March 2025. Receipts rose from $368 billion a year earlier, while spending increased from $528 billion in March 2025.

Corporate tax refunds jumped about 77% year over year and individual refunds increased roughly 9%. Net customs receipts were $22.2 billion for the month, down from $26.6 billion in February and from monthly totals in the low $30 billion range late last year, but above the $8.2 billion recorded in March 2025.

Outlays rose across several categories, with defense spending about 3% higher than a year earlier. The Treasury noted that certain war-related obligations, including replenishing weapons inventories, are expected to appear in later months.

The report highlighted the effect of calendar-related timing of benefit payments. After accounting for those timing adjustments, the March deficit would have been $250 billion, $9 billion, or 4%, higher than the adjusted March 2025 deficit.

The report also said the Supreme Court's annulment of broad global tariffs imposed under an emergency trade law softened customs duty collections compared with late-2025 peaks, though monthly customs receipts remained well above last March's level.