The U.S. federal budget deficit ballooned to $1.833 trillion in fiscal 2024—the largest outside the COVID-19 pandemic era—as interest payments on national debt surpassed $1 trillion for the first time, according to Treasury Department data released Friday.
Breaking Down the Numbers
This year’s deficit jumped 8% from $1.695 trillion in 2023, making it the third-highest in U.S. history. Without a $330 billion reversal tied to Biden’s struck-down student loan program last year, 2023’s deficit would’ve topped $2 trillion 🔥.
Interest Costs Skyrocket
The main culprit? Soaring interest payments on government debt, which spiked 29% to $1.133 trillion—higher than Medicare and defense spending combined 💥. Higher rates and growing debt drove the surge, with interest now eating up 3.93% of GDP, the highest share since 1998.
Where Did the Money Go?
Federal spending hit $6.752 trillion (+10%), driven by Social Security ($1.52T, +7%), Medicare ($1.05T, +4%), and military programs ($826B, +6%). Meanwhile, tax revenues climbed 11% to a record $4.919 trillion 💰.
Despite a rare September surplus of $64B (vs. a $171B deficit in 2023), officials warned calendar adjustments masked a $16B shortfall. Analysts say rising borrowing costs could squeeze future budgets further 🚨.
