Congressional Budget Office (CBO) reports or U.S. Treasury Department publications

U.S. Deficit Hits $1.8 Trillion; Debt Nears $36 Trillion as Interest Costs Soar

Oct 18, 2024, 07:57 PM

The United States federal budget deficit for fiscal year 2024 has reached approximately $1.8 trillion, marking one of the largest deficits in U.S. history outside of the COVID-19 pandemic period. According to the Congressional Budget Office (CBO), the federal government spent $6.8 trillion—amounting to 24% of GDP—while collecting $4.9 trillion in revenues, leading to the significant shortfall. The national debt has correspondingly surged, now standing at approximately $35.75 trillion, equating to over $100,000 per American citizen. Notably, the debt has increased by over $500 billion in just the past few weeks, including a $300 billion rise in the first 18 days of the new fiscal year. The federal government's interest expenses have become a substantial burden, with annual interest payments exceeding $1.1 trillion. These interest costs consume nearly 30% of all government revenue and are now higher than federal spending on Medicaid and defense. Moreover, interest payments are equivalent to about half of all personal income taxes collected. Economists warn that if interest rates remain at current levels, annual interest payments could surpass expenditures on Medicare and Social Security, further straining the nation’s fiscal health. Experts express concern that the current trajectory of federal spending and debt is unsustainable and poses significant risks to the nation’s economic stability.