A recent analysis of federal data reportedly reveals that the U.S. government’s spending continues to rise, despite President Donald Trump‘s concerted efforts to cut costs.
What Happened: President Trump, in collaboration with Tesla CEO Elon Musk who oversees the Department of Government Efficiency (DOGE), asserts that their spending cut measures have led to savings in the tens of billions. However, rising expenditures on health and retirement programs, along with growing interest payments, have offset these savings, according to Reuters analysis of Federal Data.
The Social Security retirement payments and Medicare are the two programs that represented over one-third of federal expenditures in the last fiscal year.
Between Jan. 21 and Feb. 20, government spending totaled approximately $710 billion, marking a notable increase from the roughly $630 billion spent during the same period last year, the report said. Experts link this rise to the challenges posed by an aging population and an increasing debt burden.
According to Treasury data, the government spent approximately $94 billion on interest payments during Trump’s first month, compared to about $80 billion during the same period the previous year.
“Our $7 trillion budget is driven by structural imbalances because we’ve over-promised in our retirement and health care programs compared to what we’re taking in,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget told Reuters.
SEE ALSO: Musk’s DOGE Staffers Revolt! Refuse To ‘Dismantle’ Services…White House Fires Back
Why It Matters: Despite rising costs, the White House maintains that DOGE is upholding Trump’s commitment to reducing wasteful and fraudulent spending. Together, they seek to trim $1 trillion from the $6.7 trillion federal budget.
However, their most significant cost-cutting measures have focused on a smaller share of the budget. They have largely dismantled the U.S. Agency for International Development (USAID) and reduced the U.S. civil service workforce. However, any payroll savings have yet to be realized.
A recent analysis by The Wall Street Journal also suggests that the Department of Government Efficiency’s last week’s declaration of $55 billion in savings from federal spending cuts may be overstated. This revelation casts doubt on the effectiveness of the cost-cutting measures implemented by Trump and Musk. Notably, the DOGE website updated the savings and the canceled contracts data on Tuesday.
Furthermore, Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, has warned of economic instability due to high global debt levels. He urged the Trump administration to cut deficits to 3% of GDP within three years or risk economic fallout. The continued rise in government spending despite cost-cutting efforts indicates a potential failure to heed this advice.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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