Jul 13, 2020 - Economy

U.S. budget deficit reached all-time high of $864 billion in June

Illustration of the Capitol building open with money coming out.

Illustration: Aïda Amer/Axios

The U.S. budget deficit reached $864 billion in June as Congress allocated trillions to help cushion the damage from the coronavirus recession and massive job losses reduced tax revenues, the Treasury Department said in its latest monthly report.

The big picture: It took 10 months last year for the country's budget deficit to reach roughly the same amount, at $866.8 billion. June's new high is the "biggest monthly budget deficit in history," per AP.

What's happening: Nearly half of the $1.1 trillion in outlays made by the government last month went to small businesses through the Paycheck Protection Program, the Wall Street Journal reports.

  • Real-time economic data has shown investors that business activity across the U.S. is stalling or declining even as states reopen during the coronavirus pandemic.
  • New unemployment applications have fallen steadily since peaking in March, but the number is still historically higher than before the pandemic hit.

Go deeper: Cash can't fix the economy's problems until the coronavirus is curbed

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