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The U.S. budget deficit ballooned to $2.81 trillion from last October through July — a record for the budgetary period, per a Treasury statement published Wednesday.

Details: $63 billion was added to the deficit last month. That was the lowest monthly figure since the pandemic began, amid a fall in government spending and as the tax filing deadline was extended to July 15.

  • Marc Goldwein, senior vice president at the nonpartisan Committee for a Responsible Federal Budget, told the Washington Post the monthly budget situation was down to a "huge influx of taxes that would otherwise be paid in April."
  • "The vast majority of the lower deficit is driven by the delay of tax season," Goldwein added.
  • A key source of spending in July lies with the Department of Health and Human Services and the Department of Labor, which provided an additional $600 per week to qualifying unemployed individuals until that payment expired last month.

The big picture: Congress has spent trillions of dollars in coronavirus relief, but negotiations for the next stimulus package have stalled. Meanwhile, millions of Americans remain without a job.

  • Fed Chair Jerome Powell has said it's "not the time to prioritize" the deficit as a concern as he focuses on supporting the economy, noting: "There's really no limit to what we can do with these lending programs that we have."

Go deeper: CBO says deficit will approach $4 trillion in 2020

Go deeper

Dion Rabouin, author of Markets
Sep 22, 2020 - Politics & Policy

Wall Street fears stimulus is doomed

Illustration: Sarah Grillo/Axios

The fight over a new Supreme Court justice will take Washington's partisan bickering to a new level and undermine any chance for needed coronavirus relief measures before November's election, Wall Street analysts say.

What we're hearing: "With the passing of Justice Ginsburg, the level of rhetorical heat has increased, if that seemed even possible," Greg Staples, head of fixed income for the Americas at DWS Group, tells Axios in an email.

The price of Washington's stimulus failure

Illustration: Eniola Odetunde/Axios

America's elected representatives have failed America.

Why it matters: The bipartisan inability to deliver economic stimulus could impede economic growth for months to come. It will create widespread damage across America — from small businesses to large industries to schools and day cares — and leave many Americans without jobs or homes.

Updated 38 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 10 a.m. ET: 32,881,747 — Total deaths: 994,821 — Total recoveries: 22,758,171Map.
  2. U.S.: Total confirmed cases as of 10 a.m. ET: 7,079,909 — Total deaths: 204,503 — Total recoveries: 2,750,459 — Total tests: 100,492,536Map.
  3. States: New York daily cases top 1,000 for first time since June — U.S. reports over 55,000 new coronavirus cases.
  4. Health: The long-term pain of the mental health pandemicFewer than 10% of Americans have coronavirus antibodies.
  5. Business: Millions start new businesses in time of coronavirus.
  6. Education: Summer college enrollment offers a glimpse of COVID-19's effect.