The U.S. government spent $1.8 trillion more than it collected in fiscal year 2024, as reported by the Treasury Department. This marks a $138 billion increase from 2023, with the deficit rising to 6.4% of GDP. While the deficit is $196 billion lower than last year, excluding a Supreme Court ruling on student loans, it still reflects ongoing fiscal challenges.
Both major party presidential candidates, Vice President Kamala Harris and former President Donald Trump, have proposed plans that could increase the national debt, with Trump’s plan projected to add $7.5 trillion and Harris’ $3.5 trillion by 2035, according to the Committee for a Responsible Federal Budget. U.S. debt now exceeds $35 trillion, and interest payments alone amounted to $900 billion in 2024, surpassing spending on national defense and Medicare.
Warnings about the growing debt have come from credit-rating agency Moody’s and the International Monetary Fund. Moody’s forecasts that without significant policy changes, U.S. debt could reach 130% of GDP by 2034. Treasury Secretary Janet Yellen praised the Biden administration’s efforts, noting investments in infrastructure and plans to reduce the deficit by $3 trillion through tax reforms.
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