Income rose quicker than spending, the CBO reported, with revenues increasing by $174 billion, while spending crept up $57 billion.
However, income would need to rise significantly to have any impact on the value of interest payments the Treasury is paying to maintain debt levels.
The CBO reported that between October and May 2026, the government has spent $742 billion servicing the debt burden, an increase on the $674 billion spent in the same period last year. The 10% increase, the CBO explained, is “because the debt was larger than it was in the first eight months of fiscal year 2025 and because of higher long-term interest rates. Declines in short-term rates partially mitigated the overall rise in interest payments.”
Comparing these interest payments to income, the CBO reports that so far this fiscal year, tariffs have generated $189 billion, a little over a quarter of the payments required merely to service the debt.
The figures did demonstrate that, before the ruling, tariffs were having a meaningful impact on the bottom line. The CBO reported that customs duties in fiscal year 2026 so far had more than doubled compared with the same period in 2025, rising by $107 billion. This increase occurred through to April, the CBO said, and was a direct result of executive action.
However, net collections on tariffs declined sharply in May, when tariff refunds began to be paid. Given that the White House moved to reintroduce tariffs on new legal grounds (namely, Section 122 of the Trade Act of 1974) in the immediate aftermath, the significant revenues generated by the policy may appear in future data.
The president has also indicated a new perspective on national debt. Previously, the White House had talked about paying down the debt, and using tariffs or visa revenues to do so.
Debt hawks are continuing to push for fiscal responsibility. The Committee for a Responsible Federal Budget is urging lawmakers to keep deficit reduction in mind as discussions over advancing a third budget reconciliation bill in Congress progress.
The committee is calling for savings of at least $600 billion, adding: “The last two reconciliation bills are projected to add nearly $5 trillion to the debt through 2035. The upcoming budget resolution should instead facilitate the passage of legislation to reduce deficits, as reconciliation is intended to do.”
