The U.S. federal budget deficit has soared to $1.834 trillion for fiscal year 2024, marking an 11% increase from the previous year’s $1.7 trillion deficit, according to the Congressional Budget Office (CBO). This surge comes as interest payments on the national debt and spending on Social Security, Medicare, and health insurance tax credits continue to rise sharply. The CBO’s estimate highlights growing concerns over the sustainability of federal spending and the increasing burden of national debt.

The report, released ahead of the U.S. Treasury Department's official year-end budget figures, reveals that the interest on public debt alone climbed 34% to $950 billion in fiscal 2024, outpacing even the Pentagon's annual budget. Additionally, outlays on Medicare and Social Security saw significant increases, contributing to a rise in overall federal spending to $6.752 trillion, up 11% from the previous year. Meanwhile, revenues grew 11%, reaching $4.918 trillion, driven by stronger individual and corporate tax collections.

The U.S. public debt now stands at $35.7 trillion, and the CBO projects that it could exceed $50 trillion by 2030. Interest payments on the debt are expected to grow significantly, which could limit the government's ability to invest in essential services and infrastructure. Experts warn that ballooning deficits and debt could lead to difficult choices for future administrations, particularly as key programs like Social Security and Medicare are expected to face funding shortages in the next decade.

The upcoming presidential election, set against this backdrop of fiscal uncertainty, will likely see increased debate over how to manage the nation's growing debt. Both Trump and Harris have laid out different visions for addressing the country’s financial challenges, but budget watchdogs are concerned that the solutions proposed so far may not be sufficient to stem the tide of rising deficits.

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