The U.S. budget deficit hit $2.8 trillion in 2021, the second highest on record. The federal budget deficit reached $2.8 trillion for 2021, the second-highest total on record but an improvement from the prior year as an economy starting to recover from the coronavirus pandemic bolstered tax revenue.

What is the United States deficit right now?

The federal deficit has now swelled to $1.7 trillion in fiscal year 2021, 129% higher than at this point last year.

Why does the US have a deficit?

Factors Impacting the Federal Budget Deficit. Many people blame the federal budget deficit on mandatory spending, but that's just part of the story. The biggest contributors to the current federal budget deficit have been COVID-19, tax cuts, mandatory programs (including entitlement programs), and military spending.