The US budget deficit is expected to rise a record high of almost $US1.6 trillion this year.
The rise is fuelled by President Barack Obama's $US787 billion stimulus package and reduced tax revenues due to the recession. Last year's deficit was $US455 billion.
The White House is warning the deficit will grow even further, predicting it will hit a cumulative $US9 trillion from 2010 to 2019.
However, it continues to expect the US economy to start to recover this year.
The White House expects unemployment in the United States to pass 10% this year, before slowly falling in 2010. The most recent official figures showed the rate at 9.4% in July.
