Headline Roundup • October 19th, 2024
US Interest On Debt Reaches All-Time High
Economy And Jobs,2024 Presidential Election,Kamala Harris,Donald Trump,Deficit,Federal Budget,Federal Debt
Summary from the AllSides News Team
For the first time, the United States was reported to owe over $1 trillion in interest on federal debt, with the fiscal 2024 budget deficit reaching $1.833 trillion.
The Details: The U.S. Department of the Treasury released a joint statement Friday highlighting an 8% increase from fiscal 2023, meaning fiscal 2024 is the third-largest annual deficit in U.S. history. The report cited higher interest rates on debt and increases in federal outlays, including Social Security, healthcare, and defense spending, which all rose 10% since 2023.
For Context: A surplus of $64 billion was reported in September, which is an improvement from September 2023, when a $171 billion deficit was declared. U.S. receipts for fiscal 2024 hit a record $4.919 trillion, up 11% from 2023, but still significantly less than the $6.75 trillion in federal outlays.
How the Media Covered It: Sources on the left seemed more reluctant to cover the developments than outlets from the right and center. Bloomberg (Lean Left bias) included context on the United States Supreme Court's decision to cancel student loan debt in 2023, saying that cancellation “effectively reduced” the deficit for the year, while many right-leaning outlets omitted this information. Fox Business (Lean Right bias), highlighted the fact that the deficit is only getting worse, giving voice to experts that warn the “government needs to rein in deficits to ensure fiscal stability.”
Common Ground: Outlets on the left and right emphasized issues with the budget plans of both Kamala Harris and Donald Trump ahead of the 2024 presidential election.
Featured Coverage of this Story
iStock / iStock
The federal government's budget deficit was nearly $2 trillion last year and is expected to widen further in future years, with experts warning that the government needs to rein in deficits to ensure fiscal stability.
The nonpartisan Congressional Budget Office (CBO) released its preliminary estimated deficit for fiscal year 2024, which was $1.834 trillion. The FY2024 deficit was $139 billion larger than the actual deficit recorded in the prior fiscal year, as spending growth eclipsed the rise in tax revenue.
The U.S. budget deficit grew to $1.833 trillion for fiscal 2024, the highest outside of the COVID era, as interest on the federal debt exceeded $1 trillion for the first time and spending grew for the Social Security retirement program, health care and the military, the Treasury Department said on Friday.
The deficit for the year ended Sept. 30 was up 8%, or $138 billion, from the $1.695 trillion recorded in fiscal 2023. It was the third-largest federal deficit in U.S. history, after the pandemic relief-driven deficits of $3.132 trillion...
Stefani Reynolds/Bloomberg
The US government’s budget deficit hit its highest since the Covid pandemic years in 2024, propelled by increased debt interest costs and higher Social Security and defense spending — which more than offset a boost in tax revenues.
The shortfall for the fiscal year, which ended Sept. 30, came to $1.83 trillion, up from $1.7 trillion the previous year and the largest on record aside from the 2020 and 2021 fiscal years, US Treasury data released Friday showed.
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