Red Ink Overflowing: In June, U.S. Borrows A Typical Year’s Worth< < Back to
WASHINGTON, D.C. (NPR) — The federal deficit ballooned last month as the government tried to cushion the blow from the coronavirus pandemic. The red ink in June alone totaled $864 billion.
The federal government ran a bigger deficit last month alone than it usually does all year. Washington spent hundreds of billions of dollars trying to prop up small businesses and assist laid-off workers.
With three months left in the fiscal year, the deficit of $2.7 trillion is already nearly twice as large as the previous record of $1.4 trillion, set in 2009 during the Great Recession.
While the government is spending heavily on the pandemic, tax collections in June were lower than usual. The tax-filing deadline was postponed until July 15.
Congressional forecasters expect the federal deficit for the full year to reach $3.7 trillion. With infections on the rise, Congress is expected to consider additional relief measures later this month.