The US Treasury just shocked Americans with a $258B surplus — its 2nd biggest monthly surplus in history

Yahoo

18-05-2025

Budget deficits are something we've come to expect from Uncle Sam. After all, without years of overspending, the federal government wouldn't be sitting on trillions of dollars in debt. But, the latest monthly Treasury statement delivered a rare — and welcome — surprise.
In April 2025, the U.S. government collected $850.2 billion in receipts while spending $591.8 billion, resulting in a monthly budget surplus of $258.4 billion.
That's not just any surplus — it's the first monthly surplus of fiscal year 2025 (which began in October 2024), and the second-largest monthly surplus in U.S. history, behind only April 2022's $308.2 billion surplus.
Does that mean President Trump's plan is working?
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According to the U.S. Department of the Treasury, the surplus was driven by 'large individual tax deposits,' with April being the due date for final payments on prior-year taxes and the first installment of quarterly estimated taxes for many individuals and businesses.
Individual income taxes alone brought in $537 billion — by far the biggest contributor to government revenue for April. Social insurance and retirement receipts followed at $184 billion, while corporate income taxes added $94 billion.
Customs duties — a reflection of Trump's tariffs — generated $15.6 billion in April, more than double the $6.3 billion collected during the same month last year. Still, tariff revenue remains modest compared to other major contributors.
On the spending side, the biggest outlay for the month was Social Security at $132 billion, followed by $89 billion in net interest, $82 billion for Medicare, $76 billion for health and $70 billion for national defense.
Despite the hefty surplus, one strong month isn't enough to reverse the broader fiscal trend. From October 1 through April 30, the U.S. government brought in $3.110 trillion in revenue but spent $4.159 trillion — resulting in a $1.049 trillion deficit for the fiscal year so far.
So it's no surprise the national debt continues to soar. As of this writing, the total outstanding debt of the U.S. government sits at a staggering $36.212 trillion.
The takeaway? To run a surplus, you have to earn more than you spend. That might be a tall order for a government juggling countless programs — but for individuals, it's a surprisingly simple (and achievable) strategy.
Here are a few ways to boost your own fiscal health in 2025 — and beyond.
If you want to improve your finances, the first step is understanding where your money goes each month. Track all your expenses for 30 days, then sort them into two categories: necessities — like rent, groceries, utilities and health care — and discretionary spending, such as dining out, entertainment, shopping and hobbies.
This breakdown gives you a clear picture of your spending habits and helps identify areas where you can cut back. But trimming waste isn't just about skipping lattes or takeout. Even in essential categories — like car insurance or banking — you may be spending more than you need to. The good news? With a bit of research, those costs can often be significantly reduced.
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Car insurance is a major recurring expense, and many people overpay without realizing it. According to Forbes, the national average cost for car insurance in 2024 was $2,150 per year (or $179 per month).
However, rates can vary widely depending on your state, driving history and vehicle type, and you could be paying more than necessary.
More Americans are also facing higher car payments, so it's important to control vehicle-related expenses where you can.
Instead of sticking with the same provider, you can try taking a few minutes to compare quotes from multiple insurers to ensure you're getting the best deal.
Bank fees can quietly drain your finances over time. Even comedian Bill Burr once complained to Joe Rogan about his bank taking $28 out of his account every month 'for no reason.'
In reality, many traditional banks charge anywhere from $5 to $35 per month in maintenance fees, overdraft fees and other hidden charges.
Online banks, on the other hand, typically offer lower fees (or none at all) since they don't have the same overhead costs as brick-and-mortar institutions.
Many online banks also offer high-interest checking and savings accounts, allowing you to earn more on your idle cash while avoiding costly fees.
Cutting expenses is one way to create a surplus — but boosting income can be just as powerful. And while asking for a raise doesn't always lead to results, there are ways to earn money without clocking in extra hours. That's where passive income comes in: money that keeps flowing with minimal day-to-day effort.
One of the most popular passive income strategies? Real estate.
When you own a rental property, tenants pay you rent each month — providing a steady stream of cash flow. It's also a time-tested hedge against inflation, since both property values and rental income tend to rise along with the cost of living.
That said, being a landlord isn't always easy. You'll be responsible for finding and screening tenants, collecting rent, and handling maintenance and repair requests (out of your own pocket) — and that's assuming you can save enough for a down payment and get a mortgage to buy the property in the first place.
The good news? These days, you don't need to buy a property outright to reap the benefits of real estate investing. Crowdfunding platforms, for example, allow everyday investors to own shares in rental properties without the large down payments or management headaches traditionally associated with real estate ownership.
Alternatively, real estate investment trusts (REITs) provide another avenue for those looking to gain exposure to this asset class.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.