The federal deficit shrinks by $1.4 trillion

Government spending still exceeded government income from taxes and fees, but the Congressional Budget Office announced Tuesday that spending outpaced income last year by half as much as the year before. The government deficit weighed in at $1.4 trillion this past fiscal year, down from $2.8 trillion.

Why is the deficit decreasing? The Biden administration argues that it made more money this fiscal year due to the president’s economic policies that promoted development and a strong labor market. Republicans argue that emergency spending programs from the pandemic merely expired, thus saving money.

Dig deeper: Read the latest WORLD magazine cover story about how the economy and other issues are weighing on voters’ minds with midterms just around the corner.