Hello there—good news for once about the U.S. government and money. Not often are we reading about the government being short of money, but that’s just what happened back in April of 2025. The U.S. Treasury posted a $258.4 billion budget surplus—yes, surplus. That is, they took in a whole lot more money than they paid out.
Let’s put that into simple words.
Why was there a surplus?
In April, the government took in $850.2 billion but only spent $591.8 billion. All that extra money, $258 billion, is the second-largest surplus in U.S. history on record. Something this big happened last in April 2022.
Then where did all that come from? Mostly from income taxes. April is tax month, when individuals and corporations pay their final taxes of the previous year and advance payments for the next year. Altogether, from individual income taxes alone, the government brought in a record $537 billion.
Other sources were
- Social Security and Medicare taxes: $184 billion
- Corporate taxes: $94 billion
- Tariffs (customs duties): $15.6 billion (thanks to Trump’s tariff policy)
Where did the money go?
Even if a surplus did exist, the government still spent a lot. The biggest April spending were:
- Social Security: $132 billion
- Interest on national debt: $89 billion
- Medicare: $82 billion
- Health programs: $76 billion
- National defense: $70 billion
It’s also important to note that despite one good month, the government is still in the red for the year.
So, is the U.S. budget back on track?
Not quite. Between October 1, 2024, and April 30, 2025, the government received approximately $3.1 trillion but spent $4.15 trillion. That’s a $1.05 trillion deficit so far this year. And the national debt? Up to more than $36 trillion now. So, the surplus rewards some, but there is still much to be done.
What can you learn from this
This may be the perfect time to think about your finances. The government was in surplus only because it received more than it paid out. The same principle applies to you as well.
Start by monitoring how you spend your money. For one month, monitor your spending. Write them down as needs (like rent, groceries, and bills) and wants (like takeout, streaming, or shopping). You’ll quickly realize places you can save.
And don’t shell out extra for auto insurance or bank charges. Shop around. Many save hundreds by switching insurers or moving cash to a fee-free online bank.
Last but not least, look at ways of passive income, like investing in real estate. These are savvy decisions that will let you build a personal surplus—even when the government isn’t successful in doing the same.
So while Uncle Sam had a surprisingly good month, perhaps it’s your turn to do the same.
