The United States has reported a budget deficit of $1.8 trillion for the past fiscal year, making it the third-highest on record. The U.S. Treasury Department announced on Friday that the deficit expanded by $138 billion for the fiscal year ending September 30, 2024.

This sharp rise is attributed to a near 30% increase in interest payments on the public debt due to higher interest rates. The deficit also surged following the reversal of over $330 billion in costs after President Biden’s student loan forgiveness program was struck down by the Supreme Court.

While White House officials pointed fingers at tax cuts pushed by congressional Republicans for lowering revenue and inflating the debt, overspending on military expenses and growing Social Security costs have exacerbated the financial strain. Despite this domestic crisis, President Biden has requested an additional $106 billion, largely allocated for military aid to Ukraine and Israel.

As U.S. citizens grapple with the economic fallout, it’s important to note that, rather than addressing these issues at home, significant resources continue to be spent on wars in the Middle East, worsening the budgetary strain. Treasury Secretary Janet Yellen, however, defended the administration’s actions, claiming that without its intervention, the deficit could have ballooned to $4.8 trillion.