The U.S. government’s deficit shrank in January from a year ago while tariff collections surged, a reminder that a long-awaited Supreme Court ruling could be critical to the federal fiscal health.

Total tariffs collected through tariffs this month were $30 billion, bringing total tariffs so far this fiscal year to $124 billion, a 304% increase from the same period in 2025.

president Donald Trump The United States first imposed tariffs in April 2025, imposing comprehensive tariffs on all goods and services entering the United States and developing so-called reciprocal tariff lists for each country. The White House has since been negotiating with trading partners, backing down on some of the more aggressive accusations while maintaining a tough stance on issues.

In November last year, the Supreme Court heard oral argument Challenging Trump’s support for defending tariffs. A decision is expected in January. The high court has yet to rule, and the White House is concerned that a negative ruling could force the U.S. to repay tariffs imposed so far.

Tariffs help curb the pace of budget deficits.

The U.S. Treasury Department reported that the shortfall in the fourth month of the fiscal year totaled about $95 billion, down about 26% from the same period last year.

So far this year, the federal deficit has reached $697 billion, down 17% from the same period in fiscal 2025, based on uncalendarly adjusted figures. Calendar adjustments cut the deficit to 21%.

Interest on the $38.6 trillion U.S. debt remains a burden on the nation’s finances. Net interest payments totaled $76 billion during the month, exceeding all other spending except Medicare, Social Security and Medicare. Year-to-date, total interest has totaled $426.5 billion, up from $392.2 billion the previous year.