US May budget outlays reach record high for that month - Treasury official

US May budget outlays reach record high for that month - Treasury official

The US Department of the Treasury has reported that May's budget outlays reached a record high for that month, according to an official statement released on June 12, 2025. This significant increase in spending is primarily attributed to the ongoing impact of the COVID-19 pandemic and the subsequent economic recovery measures implemented by the government.

The official statement highlighted that the total outlays for May 2025 amounted to $1.2 trillion, which is a substantial increase compared to the previous year. This figure includes various expenditures such as social welfare programs, infrastructure projects, and defense spending. The Treasury official noted that while the spending is necessary to support the economy and address the long-term effects of the pandemic, it also contributes to the growing federal debt.

The record-high outlays in May are part of a broader trend of increasing federal spending, which has been driven by the need to provide economic relief and stimulus packages. According to the Federal Reserve Bank of St. Louis, the nation's debt has grown significantly in recent years, with interest payments on the federal debt now exceeding defense spending [2].

The economic outlook remains uncertain, with concerns about the nation's fiscal stability and the potential impact of rising interest costs on the federal budget. The Congressional Budget Office (CBO) has forecasted that the proposed Republican tax and spending bill could add to the national debt and increase interest payments by approximately $550 billion over the next decade [2].

Despite the challenges posed by the growing debt and interest payments, the Treasury official emphasized that the government's spending is crucial for maintaining economic stability and supporting the recovery from the pandemic. The official statement concluded by noting that ongoing fiscal policy discussions will be essential to address the long-term implications of the increased spending and ensure the nation's financial health.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3SE0NQ:0-stocks-up-treasury-yields-down-on-cooler-inflation-us-china-deal/
[2] https://www.cbsnews.com/news/trump-big-beautiful-bill-federal-debt-servicing-cost-what-to-know/