The U.S. budget deficit widened by 23% to $747.1 billion in the first 9 months of the fiscal year https://t.co/MfcTuC5uz1 — Bloomberg (@business) July 11, 2019

The release of the new deficit figures came as Republicans and Democrats were still trying to hash out a new budget deal for 2020, as there is still no agreement on how much money will be spent on programs outside of Social Security and Medicare.

Under a budget law from 2011, automatic budget cuts would kick in next year unless the Congress comes to an agreement to re-set the spending limits known as the 'budget caps.'

Republicans and the President want defense spending to grow from $716 billion this year to $750 billion in 2020; Democrats argue they should get an equal increase in domestic spending.

If the sequester kicks in, defense spending would face at least $71 billion in cuts, while domestic programs would be hit with at least $55 billions in automatic reductions.

The White House budget forecast is for at least four straight years of deficits over $1 trillion.