The federal government spent $3.1 trillion more than it brought in as revenue in fiscal year 2020, which began October 2019 and ended September 2020. Fact check: After endorsing him, New York Post now pushes Trump to accept Biden's victory. Tax cuts, for example — a hallmark of Republican presidencies — reduce the government's revenue and make a deficit more likely. That was the starting point for President George H.W. The federal budget deficit soared to an all-time record high $3.1 trillion in fiscal 2020 as revenues dipped and government spending skyrocketed to combat the effects of … US economy 101: National debt vs. national deficit. Graph and download economic data for Federal Surplus or Deficit [-] (FYFSD) from 1901 to 2020 about budget, federal, and USA. Federal Budget Surplus for January 2019: $9 billion The deficit for January 2020 is in contrast to the small surplus from January 2019. The Office of Management and Budget has tracked the federal government's revenues, expenses and surpluses/deficits from 1789 to 2025 (fiscal years beyond the current one are estimates). ... Of course, it would be better if we did not need to increase the federal fiscal deficit, no pandemic, no trade deficit, higher capital gains tax for assets held under five years. "However, a lot of those specific policies do either add or subtract from the budget deficit, and in general, Democrats are better at handling the deficit than Republicans are.". ", "A Democrat is mostly elected after a Republican screw things up. The Treasury Department has been tracking accumulated debt since 1993, and it has grown under each presidential administration, per Business Insider. That was the baseline for President Gerald Ford, who took over in 1974. Keep up with the latest data and most popular content. "Any President bears some responsibility for the deficit, but so does Congress, they are passing the spending bills that the President signs," he wrote. This deficit was the difference between $365 billion of spending and $219 billion of revenue. If total revenue exceeds total expenses, the difference is called a "surplus." The claim in the viral post centers on presidents who left office with less of a deficit than when they entered the White House. More money in the hands of people who are not social distancing disturbs me. US National Debt Clock : Real Time U.S. National Debt Clock Some other presidents lowered the deficit midway through their terms, but they all exited the White House in a year with a higher deficit than the year they entered. The 2020 deficit was nearly twice as large as the deficit in 2009, when the government enacted stimulus spending in response to the Great Recession. Our fact check work is supported in part by a grant from Facebook. If total expenses exceed total revenues, the difference is called a "deficit." Increased government spending was driven by several programs responding to the pandemic-induced economic downturn. By the time he left the White House in 1977, the deficit had grown to $53.7 billion. ET Tracking the Federal Deficit: November 2020 The Congressional Budget Office estimates that the federal government ran a deficit of $146 billion in November, the second month of fiscal year 2021. What would it take to cut the federal deficit? That increase is mostly the result of the economic disruption caused by the 2020 coronavirus pandemic and the enactment of legislation in response. That was the baseline for President Barack Obama, who entered the White House in 2009. The government has also spent more than $500 billion on unemployment insurance this year, while the government had spent just over $30 billion on the same programs the previous year. The U.S. federal budget deficit will soar to a record $3.3 trillion this fiscal year, swelling government debt to a size bigger than the economy in the wake of massive spending to … The U.S. is set to record a $3.3 trillion deficit in fiscal 2020. Stephen Ellis, the president of Taxpayers for Common Sense, told USA TODAY that some responsibility for the deficit also falls to Congress. The 2020 US federal deficit is a record $3.1 trillion The federal government spent $3.1 trillion more than it brought in as revenue in fiscal year 2020, which began October 2019 and ended September 2020. The posts feature photos of Democratic Presidents Bill Clinton and Barack Obama, and pose the question, "Why do Republicans claim to be fiscally conservative when these are the only two presidents to lower the deficit in the last 50 years? Who has access to paid sick and medical leave? Joann Weiner, an economics professor at George Washington University, told USA TODAY that "it is true, in fact, that Republicans create deficits and Democrats reduce deficits, by their personal choices.". Like any entity, the federal government generates revenue and racks up expenses on an annual basis. The federal deficit for fiscal year 2020 was $3.1 trillion, or 14.9% of gross domestic product, the Congressional Budget Office reported Monday, the largest as a … Thank you for supporting our journalism. "Even though Clinton had some surpluses, the accumulated deficits were more in excess of that.". In 2020, federal spending increased in response to … That was the baseline for President Ronald Reagan when he entered the White House in 1981. In the Federal government’s fiscal 2020 year that is ending in three days, President Trump will have overseen a deficit exceeding $3 trillion. That was the starting point for President Jimmy Carter when he entered the White House in 1977. The claim: Clinton and Obama were the only presidents to lower the deficit in the last 50 years. "The debt is the nation’s accumulated annual deficits over all the years," Ellis wrote. Government data from over 70 sources organized to show how the money flows, the impact, and who "the people" are. It's also worth noting that the deficit is distinct from the federal debt — which increased under both Clinton and Obama. The figure is specific to each fiscal year. At the time, there was a $3.2 billion surplus. The 2020s Will Be the Decade of Deficit Doomsday America will have to pay for its spending spree and its wars. By the time Trump leaves in 2021, there will be a $966 billion deficit, according to estimates from the Office of Management and Budget. On Thursday, the Congressional Budget Office estimated that for fiscal year 2020, which ended September 30, the US deficit hit $3.13 trillion -- or 15.2% of GDP -- … That was the starting point for President George W. Bush, who took over the White House in 2001. The deficits in November of both years were affected by shifts in the timing of certain federal payments because November 1, 2020 and December 1, 2019 each fell on a weekend. Here are the priorities for the Biden administration's first 100 days. As of the end of the second quarter of 2020, the public debt was 136% of, or 36% larger than, the nation’s gross domestic product. Office of Management and Budget, accessed Dec. 31. By the time he exited in 1989, the deficit had doubled to $152.6 billion. You can subscribe to our print edition, ad-free app or electronic newspaper replica here. But what's the difference? The pandemic’s full impact on state tax revenue remains to be seen, though revenue for the second quarter of 2020 was significantly lower than revenue for the same quarter in 2019. Presidents are also not solely responsible for changes in the deficit; for example, Congress plays a role. Eric Boehm | 1.10.2020 2:50 PM The accumulated federal budget deficits, plus other off-budget expenses, comprise the federal debt, per the Treasury Department. In addition, certain federal payments in 2020 were shifted into January because February 1st fell on a weekend. From health insurance to prescription drug prices, the cost of healthcare has been a political issue for decades. By the time he exited, there was a $128.2 billion surplus. Under Clinton, federal debt grew $1.49 trillion. On Friday, the US Treasury reported that for fiscal year 2020, which ended September 30, the US deficit hit $3.13 trillion (which is an estimated 15.2% of GDP) … Meanwhile, federal government revenue was relatively similar to that of last year. By the time he left in 1993, the deficit had grown over $100 billion to $255 billion. Fact check: Obama, Bush and Clinton would publicly get vaccinated to boost confidence. It's too soon to say the final figure for Trump. Then Republican Senators become fiscally responsible, forcing the Democrat to just fix the problem and never vote for social programs," she wrote. But so far, under his administration, federal debt has increased about $7 trillion, per USA TODAY. Bush, who entered the White House in 1989. The number of new jobs and the unemployment rate are regularly cited in the news, but they’re just part of the picture. By the time he exited in 2017, there was a $665.4 billion deficit — about half of what it was when he entered. "Presidents don't control every lever in the economy," she said. The federal deficit as a share of GDP in 2020 is likely to be the highest it has been since World War II, with a $3.6 trillion deficit making up approximately 15 percent of U.S. GDP. It's worth noting that how each president grew or shrunk the budget deficit over their terms in office is distinct from how much they added to total federal debt. Under Obama, it grew another $8.95 trillion. But some other presidents lowered the deficit midway through their terms. It's true that Clinton and Obama were the only presidents in the last five decades to exit the White House in a year with a lower deficit than the year when they entered. Read breaking headlines covering Congress, Democrats, Republicans, election news, and more. Total federal government public debt is now up to approximately $26 trillion. This deficit is 15.2 percent of projected GDP, the fourth-highest in recorded history after three years during World War II. Track how COVID-19 is spreading in the US, plus key indicators for pandemic recovery. ", Fact check: These 5 election statistics do not discredit Joe Biden's victory. In both years, certain federal payments were shifted into December because January 1st was a holiday. Beginning in 2016, increases in spending on Social Security, health care, and interest on federal debt have outpaced the growth of federal revenue. 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