On October 18, 2024, the U.S. Treasury Department reported that the federal budget deficit for fiscal year 2024 reached $1.833 trillion, marking the highest level outside of the COVID-19 pandemic. This figure represents an 8% increase from the previous year's deficit of $1.695 trillion.
The significant shortfall was driven by a historic rise in interest costs, which exceeded $1 trillion for the first time, alongside increased expenditures on Social Security, healthcare, and military programs. The deficit now accounts for 6.4% of the gross domestic product (GDP), up from 6.2% the previous year.
Tax receipts for fiscal 2024 hit a record $4.919 trillion, reflecting an 11% increase, while total outlays rose by 10% to $6.752 trillion. Notably, interest payments on the national debt surged by 29% to $1.133 trillion, surpassing costs associated with Medicare and defense.
In September 2024, the government recorded a $64 billion surplus, contrasting with a $171 billion deficit in September 2023. However, this surplus was attributed to calendar adjustments for benefit payments, which if excluded, would have resulted in a $16 billion deficit for the month.