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U.S. Spending Surges by About $220 Billion in First 100 Days, Defying Trump’s Proposed Cuts

Photo credit: www.cbsnews.com

Despite commitments to reduce government expenditure during the election campaign and his initial months in office, President Trump’s administration has reported an increase of approximately $220 billion in federal spending during his first 100 days compared to the same period the previous year.

Current spending levels exceed those recorded in nine of the past ten years, with the notable exception being 2021, when the government expended trillions to combat the COVID-19 pandemic and avert economic collapse.

An examination of daily financial reports from the Treasury Department reveals significant insights into the fiscal activities of the government. These findings raise questions about how such spending increases can occur amid ongoing announcements of layoffs, the termination of contracts, and purported initiatives to eliminate fraud under Mr. Trump’s administration, which includes efforts led by Elon Musk’s Department of Government Efficiency (DOGE) to streamline operations.

The complexity of the government’s budget is a considerable factor in this scenario, particularly regarding large-scale expenditures that the White House cannot control outright, as well as substantial financial commitments related to the retirement and healthcare of the aging population.

Political dynamics also play a crucial role. The conservative base that propelled Mr. Trump to office, along with Republican majorities in Congress, generally do not support reductions in funding for pivotal areas, including military operations and veterans’ care.

Spending Increases Under Trump

Analysis of the Treasury Department’s reports indicates notable areas of grown federal spending during Mr. Trump’s second term. Chief among these are expenditures related to the military and senior citizen welfare programs.

The trend of spending beyond revenue has intensified the national debt. Coupled with rising interest rates, the cost of servicing this debt has surged, approximately doubling compared to three years ago. The current financial obligations concerning public debt only partially reflect the broader scope of the government’s monetary liabilities.

One avenue through which the Trump administration could influence budgetary matters is through the civilian workforce. However, many initiatives aimed at workforce reduction face legal hurdles, stymying potential layoffs and restructuring.

Despite announcements of employee reductions, federal payroll costs represent a significant rise in overall spending. A 2% salary increase for federal workers, enacted by then-President Biden shortly before Christmas due to Congress’s delays in establishing permanent budgets, adds to this financial landscape.

Major cost drivers in the federal budget include military and veterans’ services, as well as Social Security, Medicare, Medicaid, and interest payments—all of which collectively constituted nearly two-thirds of federal expenditures in the last fiscal year. This distribution has seen little change over the past decade.

Most cost-cutting efforts by DOGE have targeted smaller expenditure areas, which may resonate with the political base, such as foreign aid, the Education Department, and grants to higher education institutions. However, critics argue that if savings from these cuts are minor relative to the overall budget, the broader implications may be problematic.

Nath Malkus, a senior fellow at the American Enterprise Institute, noted, “If the savings are rather small and the pain is high, DOGE will face criticism.” He emphasized that any meaningful reduction in federal spending must address the largest budget items, namely Medicare, Medicaid, and interest obligations.

While some agencies have reported temporary expenditure cuts, the fiscal year is not yet concluded. Observations about financial strategies and spending patterns will evolve as the year progresses.

Assessment of DOGE Initiatives

The DOGE initiative has concentrated on various smaller-scale federal programs, claiming to have generated savings of up to $160 billion through the cancellation of grants, contracts, and workforce reductions. However, only a portion of this alleged savings is detailed on DOGE’s disclosure platform, with many reported figures lacking robust documentation.

Based on an independent review, Malkus suggested that actual savings might be closer to $80 billion, a figure that remains minor in the context of the overall federal budget and national debt, which stands at $36 trillion. The purported DOGE savings represent merely 0.5% of the national debt, likening the effort to a family paying down a small fraction of a substantial credit card balance.

Research from the Partnership for Public Service indicated that operational disruptions resulting from DOGE’s initiatives may have inadvertently cost taxpayers $135 million. As discussions around these budgetary strategies advance, Musk has recently indicated that his involvement in DOGE may be tapering off.

Further Exploration of Government Spending

For those interested in delving deeper into federal financial activities, the government’s daily account records are available for examination. Users can analyze the spending trends by category during the initial months of the Trump administration relative to the same timeframe over the last decade.

Information on specific agencies and spending categories—those with expenditures exceeding $100 million since January 20, 2025—can provide additional context about budgetary changes during this administration.

Source
www.cbsnews.com

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