The Congressional Budget Office estimated Wednesday that the federal budget deficit for fiscal 2025 was $1.8 trillion as interest payments crossed $1 trillion for the first time.

That $1.8 trillion number is $8 billion less than what was recorded in fiscal 2024. Tax revenue increased by just over $300 billion, but spending also increased by about the same amount, according to the CBO.

Recommended Stories

• Liquor exports to Canada plunge 85% as industry warns of trade tension fallout
• November Social Security direct payments worth $967 go out in 24 days
• Bessent picks Social Security Commissioner Frank Bisignano to be IRS CEO

But interest payments also soared, a concerning trend that has only gotten worse in recent years. Net interest on the public debt was $1.03 trillion, up from $949 billion in fiscal 2024.

This story is breaking and will be updated.