The federal government spent $660 billion more than it collected in tax revenue this March, the Department of Treasury said Monday, as the Biden administration’s stimulus package pushed the U.S. monthly deficit near record highs.
The U.S. spent $927 billion in March alone — more than double the level from March 2020 — a jump due primarily to the disbursal of tens of millions of $1,400 stimulus payments under Biden’s American Rescue Plan. Meanwhile, tax revenues stayed largely flat, with the government only collecting slightly more than last March.
The resulting deficit is the third largest ever in American history, Treasury officials said, eclipsed only by April and June of last year — when the U.S. authorized larger levels of emergency spending to head off the economic crisis caused by the pandemic. Many economists and lawmakers clamored for the additional spending as necessary to help the economy recovery from one of the worst shocks in decades, with millions of workers still out of a job.