Federal budget

Federal budget deficit tops $1 trillion: CBO

 US Capitol with One hundred dollar bill
Photo: Joe Sohm/Visions of America/Universal Images Group via Getty Images


The federal deficit exceeded $1 trillion in the first 11 months of fiscal year 2019, the Congressional Budget Office (CBO) said in a report published Monday.

The big picture: The deficit is $168 billion more than for the same period in the previous fiscal year. The growing deficit has been driven by mandatory spending in areas including Social Security and Medicare, President Trump's tax cuts, and bipartisan agreements to increase spending in areas such as defense — which contributed toward overall federal government spending increasing 7%.

Trump endorses a 2.6% raise for federal employees

In this image, Trump is standing in a forest and speaking.
Trump speaks to the media before boarding Marine One on August 30. Photo: Mandel Ngan/AFP/Getty Images

President Trump endorsed a 2.6% pay raise for federal employees on Friday that would take effect on the first applicable pay period beginning on or after Jan. 1, 2020.

The big picture: Without the raise, federal employees would see a much larger automatic increase, thanks to a "complex federal employee pay law" that requires a default pay bump if Congress doesn’t legislate one by the end of 2019, the Washington Post reports.