US Budget Deficit Reaches $1.8 Trillion

The U.S. Treasury Department reported a budget deficit of $1.8 trillion for the fiscal year ending September 30, 2024, marking a $138 billion increase from the previous year and ranking as the third highest deficit in U.S. history. Contributing factors include a nearly 30% rise in interest payments on public debt due to higher interest rates, a reversal of over $330 billion in expenses from the prior year linked to the Supreme Court's ruling against President Biden's student loan forgiveness program, and elevated military and Social Security spending. Despite a reported $64.3 billion surplus in September, total spending reached $6.75 trillion against $4.9 trillion in receipts. This led to a national debt increase to $35.7 trillion, with interest payments exceeding $1 trillion for the first time. While some White House officials attribute the deficit rise to congressional Republicans' tax cuts, Treasury Secretary Janet Yellen emphasized the economy's resilience and commitments to fiscal responsibility. As the country approaches the presidential election, the budget deficit remains a key concern among voters.