Core Insights - The U.S. federal government reported a budget surplus of $258 billion in April, marking the second-largest surplus on record, following a $308 billion surplus in 2021, and reflecting a 23% year-over-year increase, or approximately $49 billion, compared to a $160.5 billion deficit in the previous month [2] Revenue and Expenditure - April's total tariff revenue reached $16 billion, an increase of approximately $9 billion from the same month last year, significantly surpassing the previous record of $9.6 billion set two years ago [3] - The Treasury's spending in April was $592 billion, slightly higher than March's $528 billion and exceeding last year's $567 billion, with over $100 billion allocated to interest on the national debt, which currently stands at approximately $37 trillion [3][4] - The unexpected surge in revenue and resulting budget surplus has made the cumulative deficit for fiscal year 2025 appear less catastrophic, with a reported deficit of $1.049 trillion for the first seven months of the fiscal year, a 23% increase from the previous year [5] Tax Revenue Dynamics - The increase in revenue is primarily driven by a 6% rise in individual withholding tax payments, totaling $2.145 trillion, which constitutes the largest share of budget revenue [5] - The overall revenue for the fiscal year to date has grown by 5%, while expenditures have increased by 9%, largely due to rising costs associated with Medicare and Medicaid programs [5]