The Biden administration has spent much more than it collected in revenue, with a budget deficit for fiscal year 2024 standing at $1.8 trillion, the highest level since the Covid-19 pandemic, the Congressional Budget Office (CBO) said.
Republican Senator Chuck Grassley has meanwhile referred to the CBO survey as he blamed President Joe Biden and Vice President Kamala Harris for “ignoring resounding messages from Americans nationwide, as well as alarms from global credit ratings companies.”
"By consistently choosing a spendthrift agenda over fiscal sanity, this administration has hamstrung our economy for generations to come," Grassley said in a statement.
This comes after a report for Brown University’s Costs of War project showed that the US had spent a record of at least $17.9 billion on military aid to Israel since October 2023.
When it comes to the Ukraine conflict, the US has already allotted over $174 billion towards support of the Kiev regime, with more such spending expected to be announced at a meeting of the Ramstein group, which was rescheduled after President Joe Biden canceled his trip to Germany due to Hurricane Milton.
At the same time, high interest rates send the cost of the government’s payments on borrowed money soaring, and federal spending is on the rise. The cost of a number of government programs has significantly exceeded initial expectations, including the Internal Revenue Service and the Inflation Reduction Act, which may pay out 200 million and more than $1 trillion, respectively.
Commenting on the state of the US economy, House Speaker Mike Johnson earlier said the Biden administration has "spent too much money, grown the size of the government, and regulated some industries almost to the point of extinction."