US Overspent $1.8 Trillion in 2024 Due to Social Security, Healthcare, and Military

The 2024 budget deficit of $1.833 trillion is the third-largest in US history.

By Thea Felicity

Oct 19 2024, 02:27 AM EDT

Senate Intelligence Committee Holds Hearing On Worldwide Threats — WASHINGTON, DC - MARCH 11: Defense Intelligence Agency Director Lieutenant General Jeffrey Kruse, Federal Bureau of Investigation Director Christopher Wray, Central Intelligence Agency Director William Burns, Director of National Intelligence Avril Haines and National Security Agency General Timothy Haugh and Assistant Secretary of State for Intelligence and Research Brett Holmgren prepare to testify before the Senate Select Committee on Intelligence about global threats against the United States during an open hearing in the Hart Senate Office Building on Capitol Hill on March 11, 2024 in Washington, DC. The U.S. intelligence community leaders testified before the committee about immigration, terrorism, threats posed by China, Russia and North Korea and other threats. Chip Somodevilla/Getty Images

With interest payments on federal debt and rising costs for social security, healthcare, and the military, the US reportedly overspent $1.833 trillion for the 2024 fiscal year.

This figure was reportedly the highest since the COVID-19 pandemic, growing the budget deficit by 8% or $138 billion, compared to 2023's $1.695 trillion.

Overall, Reuters reported that this is the third-largest budget deficit in US history. However, it's worth noting that last year, overspending was comparably lower since the Supreme Court blocked a $330 billion student load proposed by President Biden. Without this, the deficit for 2023 would have exceeded $2 trillion.

US Budget Deficit in 2024

In the same report, the US overspending for 2024 is equivalent to 6.4% of the country's economic output. As the 2024 presidential elections loom ahead, this large budget gap could challenge Kamala Harris, who claimed that she can manage finances better than Trump.

But according to NPR, budget groups believe Trump's financial plans could add $7.5 trillion in new debt, which is more than double the $3.5 trillion expected from Harris.

Currently, White House budget director, Shalanda Young, stated that the US economy is heading for strong growth with the outgoing administration zeroing in on investing in clean energy, advanced manufacturing, and infrastructures.

Biden is also focused on fiscal responsibility by making sure the richest people and giant companies pay their fair share in taxes. VCPost earlier shared that this is also part of Kamala's plan to raise their taxes, which will collect a record $4.919 trillion in revenue, and could save the government $1 trillion.

What's Behind Budget Deficits This Year

Budget deficits this year can be attributed to higher interest rates from debt, which is currently, $1.333 trillion, per the same Reuters report. This surpassed the budget for healthcare programs, which only saw 4% increase, and military defense, with 6%.

Additionally, there's also a 7% rise in Social Security in 2024, which costs $1.520 trillion. Take note, however, that there were already adjustments made for benefit payments. WIthout the, 2024 would've saw a $16 billion more deficit.

In terms of revenue, US government collected a record $528 billion worth of tax in Septmber, a 13% increase from the previous year.