US budget deficit cut in half to $1.38T as pandemic spending slows down


Wharton study critiques Inflation Reduction Act’s ability to reduce deficits

Former White House deputy chief of staff Karl Rove and Fox News contributor Liz Peek predict the effectiveness of the Inflation Reduction Act on ‘The Evening Edit.’

The U.S. federal budget deficit fell by half for the 2022 financial year as once-aggressive pandemic relief spending dried up, the Treasury Department said on Friday. 

The gap between what the government spent and what it collected tumbled to $1.375 trillion at the end of September, down from the 2021 deficit of $2.776 trillion. 

The decline would have been steeper if it were not for the Biden administration's student loan forgiveness plan: Education Department spending for the year totaled $639.4 billion, $408 billion higher than the estimate

This is a developing story. Please check back for updates.

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