Government Spending
For nan fiscal twelvemonth that ended connected September 30, nan national authorities spent much than $7 trillion and ran a $1.8 trillion deficit.
Eric Boehm | 10.10.2025 3:00 PM
(Aaron Schwartz/UPI/Newscom)
President Donald Trump returned to nan White House pinch a committedness to slash spending by trillions of dollars and balance nan national budget.
But, arsenic nan first fiscal twelvemonth of his 2nd word came to a close, advancement had not been made connected either of those goals.
Despite nan high-profile efforts of Trump's Department of Government Efficiency (DOGE), nan 2025 national fiscal twelvemonth ended pinch nan national authorities having spent more money than it did successful nan erstwhile fiscal year, nan Congressional Budget Office (CBO) reported this week. For nan fiscal twelvemonth that ended connected September 30, nan national authorities spent a small much than $7 trillion, a $301 cardinal summation from FY 2024.
Because taxation collections climbed by $308 cardinal complete past year's total, nan wide fund shortage fell by a scant $8 billion—but nan authorities still spent $1.8 trillion much than it collected successful taxes, according to nan CBO's data. To put that $8 cardinal simplification successful context, nan national authorities spends astir $19 cardinal per day.
In short, nan champion point that tin beryllium said astir Trump's first 9 months successful complaint of nan national authorities is that nan shortage didn't get worse. That's praiseworthy, but still falls good short of what Trump (and his one-time state Elon Musk) promised would happen.
The CBO's end-of-year study helpfully spells retired which parts of nan national fund saw nan biggest year-over-year spending increases. Overwhelmingly, and unsurprisingly, nan biggest increases were for nan alleged entitlement programs: Social Security, Medicare, and Medicaid. For those 3 programs, spending accrued by a mixed $245 billion.
Other large spending increases were recorded by nan Pentagon ($38 billion) and nan Department of Veterans Affairs ($41 billion), wherever nan summation was driven by nan rising costs of wellness attraction facilities. Interest payments connected nan nationalist indebtedness roseate by $80 cardinal compared to nan erstwhile fiscal year's totals.
Overall, nan CBO's study serves to underline nan aforesaid fiscal reality that plagued nan DOGE project: Cutting silly authorities contracts and foreign aid might beryllium a worthwhile effort, but that won't make a dent successful nan fund deficit. Any superior effort astatine fiscal betterment has to attraction connected nan areas of nan fund that are increasing twelvemonth complete year—which, realistically, intends looking astatine entitlement programs.
The first 9 months are not nan last connection connected Trump's 2nd term, of course. One could besides reason that spending would person grown by moreover much if not for DOGE's effort aliases if Trump had not been president. Those counterfactuals are intolerable to disprove, but they are besides too nan point: Trump did not committedness to limit spending growth—he declared, successful a scripted reside to Congress, that he would equilibrium nan budget. That's nan modular he has group for himself.
There are plentifulness of reasons to beryllium skeptical that thing will alteration successful nan adjacent 3 years. For one, Trump's track record aft astir 5 years arsenic president does not propose he cares very overmuch astir really cutting spending. The coming years will besides bring greater headwinds to immoderate attempts astatine reducing nan deficit. That's owed successful portion to nan expected increases successful entitlement spending, arsenic good arsenic nan fiscal effects of nan One Big Beautiful Bill Act, which extended and expanded nan 2017 taxation cuts successful ways that will apt add to nan deficit.
As nan caller fiscal twelvemonth begins, cutting spending and reducing nan shortage ought to beryllium apical priorities for nan Trump management and Republican members of Congress. The past 9 months show really difficult those tasks will be.
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Government SpendingBudgetTrump AdministrationDOGEFederal governmentBudget DeficitDeficitsDebtNational DebtCBOFiscal policy
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