President Joe Biden went on a spending binge in the homestretch of his term as the US government borrowed more than $700 billion in the first three months of fiscal year 2025. The Congressional Budget Office (CBO), a nonpartisan budget watchdog, assessed the latest federal deficit figures and concluded that Uncle Sam spent more than he did a year ago. Could President-elect Donald Trump inherit a $2.8 trillion shortfall when Sept. 30, 2025, rolls around? Unless the Department of Government Efficiency, or DOGE, tosses a Hail Mary, it looks very much possible.
Government Spending Offends Drunken Sailors
Before the Treasury Department published its monthly statement in December, the CBO released its monthly budget review. While not perfect, the organization is typically within plus or minus a few billion dollars of the official numbers, which is, incidentally, how much the United States spends on daily interest payments.
In December, the estimated deficit was $85 billion as revenues were higher than a year ago and outlays were smaller. However, due to shifts in the timing of various federal payments, the shortfall would have been $35 billion higher than reported. The big-ticket spending items saw sizable increases last month, such as Medicare (20%), net interest on the public debt (19%), and Social Security benefits (7%).
In the first quarter of FY 2025, the US government’s budget deficit totaled $710 billion, $200 billion more than the shortfall registered in the last fiscal year. Spending was 11% higher, reaching $175 billion. Revenues tumbled 2%, totaling $25 billion.
The Committee for a Responsible Federal Budget, an independent policy organization, projects that Uncle Sam is maintaining a $2 trillion rolling 12-month deficit. […]
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