WASHINGTON, June 10 (Reuters) - The U.S. budget deficit for

May fell $23 billion or 7% to $293 billion due largely to

prior-year calendar shifts in benefit payments as both outlays

and receipts fell, with the latter taking a big hit from refunds

of President Donald Trump's emergency tariffs, the Treasury

Department said on Wednesday.

Customs duty refunds totaled $21.97 billion in May against

gross customs collections of $21.93 billion, making for net

customs outflows of $42 million for the month, the Treasury

said.

The U.S. Customs and Border Protection agency began issuing

refunds of some $166 billion in tariffs collected under the

International Emergency Economic Powers Act that were declared

illegal by the U.S. Supreme Court in February. Prior to this,

customs duties had become a significant source of Treasury

monthly receipts, reaching into the low $30 billion range late

last year.

Total receipts for May fell $36 billion or 10% to $336

billion compared to May 2025, while outlays fell $59 billion, or

9% to $628 billion.

But taking into account calendar shifts of some June 2025

payments into May that year, the Treasury said the adjusted May

budget deficit at $293 billion would be an increase of $71

billion or 32% from the prior year.

The budget deficit for the first eight months of the fiscal

2026 year starting Oct. 1 totaled $1.246 trillion, a decline of

$118 billion or 9% on an unadjusted basis.