U.S. sets record for largest monthly budget deficit

The federal government was setting fiscal records in June - and not good ones - as Uncle Sam ran the largest monthly deficit in U.S. history at $864 billion, raising the yearly deficit to $2.7 trillion, as the Coronavirus will drench the nation in unprecedented amounts of red ink.

“The good news is this means we’re getting fiscal relief out the door fast,” said Maya MacGuineas, head of the Committee for a Responsible Federal Budget.

“The bad news is that we’re having to borrow record amounts on top of so much unpaid for spending and tax cuts that lawmakers approved in the past few years,” she added.

Spurred by the massive relief efforts to deal with the virus outbreak, the feds have spent $5 trillion so far in 2020 - up 49 percent from a year ago.

Congress may approve even more spending in coming weeks as a way to help deal with the virus outbreak, and the negative economic impact on the economy.

House Democrats passed a $3 trillion aid package back in May; Senate Republicans have been eyeing a plan in the $1 trillion range.

Whatever lawmakers approve and President Trump signs into law, it will add even more to a 2020 deficit which will absolutely shatter the record of $1.5 trillion in 2010.

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