US budget deficit reaches $1.8 trillion in 2024, third largest on record

The US budget deficit reached $1.833 trillion for fiscal year 2024, marking an 8% increase from $1.695 trillion in 2023. This is the third-largest deficit in US history, driven by high interest costs on federal debt and increased spending on Social Security and healthcare. Interest payments on the federal debt surpassed $1 trillion for the first time. The deficit represents 6.4% of gross domestic product, slightly up from 6.2% the previous year. The 2023 deficit was lower due to the reversal of costs from a student loan program. Without this adjustment, the deficit would have exceeded $2 trillion.