US Budget Deficit Jumps to $1.7 Trillion in 2023, Complicating Spending Deal Efforts

The US budget deficit jumped to $1.7 trillion in fiscal year 2023, a 23% increase from the prior year.

The deficit essentially doubled from about $1 trillion if not for counting Biden's student debt cancellation plan that was struck down.

Lower tax revenues, particularly from individual income taxes, accounted for over 40% of the increase in the deficit.

Higher spending on entitlement programs like Social Security and Medicaid made up over a quarter of the widening budget gap.

The growing deficit will likely complicate Congress' efforts to reach a federal spending deal before funding runs out in November.