The Congressional Budget Office (CBO) has estimated a U.S. federal deficit of $1.834 trillion for fiscal 2024, marking the highest post-COVID deficit. This reflects an 11% increase from the $1.7 trillion deficit in 2023, fueled by rising interest costs and increased outlays for Social Security, Medicare, and health insurance tax credits. The deficit is slightly lower than the $1.9 trillion estimated by the CBO in June.
Despite an 11% rise in revenues, primarily from higher income taxes, spending surged, especially on public debt interest, which jumped 34% to $950 billion. Medicare, Social Security, and military expenditures also rose significantly.
Republicans criticized the Biden administration’s fiscal policies, while Vice President Kamala Harris pledged to offset new spending with tax increases. CBO projects baseline deficits to grow $22 trillion over the next decade.
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