CBO projections show an 11% rise in the deficit, reaching $1.8 trillion in fiscal year 2024, up from $1.7 trillion the previous year.
During this period, the US government’s expenditures climbed to $6.8 trillion, marking a 10% increase from 2023.
According to the Congressional Budget Office, this is the largest deficit since the COVID-19 pandemic, largely due to the Biden administration’s significant spending over its revenue collection.
Republican Senator Chuck Grassley criticized the fiscal approach of the Biden administration, attributing the economic challenges to President Joe Biden and Vice President Kamala Harris.
He accused them of disregarding public opinion and warnings from international credit agencies by continuing to prioritize excessive spending.
Additionally, a report from Brown University’s Costs of War project highlighted that the US has provided a record $17.9 billion in military aid to Israel since October 2023.
Regarding the Ukraine conflict, the US has committed over $174 billion in support, with further expenditures expected to be announced following a postponed Ramstein group meeting due to President Biden’s canceled trip to Germany because of Hurricane Milton.
Amid these spending increases, high interest rates have escalated the cost of government debt payments.
Federal spending has surged, with significant overruns in programs like the Internal Revenue Service and the Inflation Reduction Act, which are expected to cost $200 million and over $1 trillion, respectively.
House Speaker Mike Johnson also commented on the economic situation, criticizing the Biden administration for excessive spending, expanding government size, and heavy regulation of certain industries, pushing them nearly to extinction.
