Federal spending is higher since President Trump took office even as the Department of Government Efficiency slashes contracts, cuts jobs and ends diversity programs.
A Wall Street Journal analysis of daily financial statements issued by the Treasury Department found government spending since the inauguration is $154 billion more than in the same period in 2024 during the administration of former President Joe Biden.
DOGE claims cuts of $150 billion so far, but the Journal analysis found those efforts have yet to affect the bottom line.
And while the government’s income—taxes and revenues including tariffs—is also up, it isn’t enough to keep pace with higher spending.
Hard to tame
Last fiscal year, about 73% of federal spending went to interest on the debt and mandatory programs like Social Security and Medicare that operate on autopilot. That amounted to $4.9 trillion.
Federal Spending in FY2024
Mandatory spending includes programs that continue each year without new authorization from Congress, while discretionary spending is appropriated in the annual budget.
This year Social Security payments are $32.7 billion higher since Trump took office.
The increased costs are driven mainly by nearly 1.3 million new beneficiaries in the past year and a mandated 2.5% cost-of-living adjustment. DOGE says it is rooting out fraudulent claims and cutting staff, but Trump has promised to leave benefits untouched.
Medicare and Medicaid spending are similarly outpacing levels from a year ago, growing by about $29 billion since the inauguration. Increased enrollments and rising healthcare costs are helping fuel this growth. Combined, Social Security, Medicare and Medicaid accounted for roughly 43% of federal spending in the last fiscal year.
Rounding out the mandatory spending increases is the rapidly growing cost of interest on the national debt, which DOGE chief Elon Musk says could eventually consume the entire federal budget if unchecked.
Disclaimer
The information contained in South Florida Reporter is for general information purposes only.
The South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service.
In no event shall the South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service. The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice.
The Company does not warrant that the Service is free of viruses or other harmful components
