he US government has already collected around $100 billion in tariff revenue so far in 2025 and is on track to triple that amount by the year’s end, Treasury Secretary Scott Bessent said on Tuesday, highlighting the fiscal boost from President Donald Trump’s aggressive trade policy.
Bessent projected tariff income could reach $300 billion by December.
The US Treasury Department announced plans to rebuild its cash balance to $500 billion by the end of July, following the recent passage of President Trump’s sweeping $5 trillion tax and spending bill, which included a significant debt ceiling hike.
The department’s cash balance had dropped to $372 billion as of last week, according to a JPMorgan research note, well below the operational target range. To address the shortfall, the Treasury will sharply increase the issuance of short-term Treasury bills (T-bills).
Surge in T-Bill auctions
According to updated guidance issued on Tuesday, the Treasury raised the size of four-week and eight-week bill auctions by $25 billion each, bringing the four-week total to $80 billion and the eight-week to $70 billion, totaling $150 billion in bills to be sold on Thursday. These are the largest auction sizes since May 22, according to Action Economics.
The department will continue relying on shorter-tenor securities—specifically four-, six-, and eight-week bills—to finance operations and replenish reserves.
No new cash management bills expected
Importantly, the Treasury does not expect to issue additional cash management bills (CMBs) to rebuild its reserves, signaling confidence in the T-bill market’s ability to absorb increased issuance. The CMB series announced on June 24 has now been completed, the department said.
At the May refunding, the Treasury had targeted a $850 billion cash balance by the end of September, suggesting further issuance will continue in the months ahead as it aligns with internal cash balance policy.