February 25, 2025

The real federal money situation

Axios - This column is our attempt to clinically outline the facts about deficits — and efforts to reduce or eliminate them.

The big picture: Trump and Musk are correct that America is drowning in deficits. Some of it flows from silly spending on stale or even stupid programs. Those make for terrific X dunking: Agencies with more software licenses than employees! A $324,671 USDA grant for "Increasing DEIA Programming for Integrated Pest Management"! A $3 million Education Department contract "to write a report that showed that prior reports were not utilized by schools"!

  • But trimming fat is harder than it looks: 37% of the contract terminations on an initial list on DOGE's "Wall of Receipts" ... weren't expected to save any money, usually because it had already been spent.
  • And the only way to truly reduce the deficit is to target the very programs Trump refuses to touch — defense, Medicare, Medicaid and Social Security. They account for 86% of the budget.
  • That's reality for a country that, across Democratic and Republican administrations, has spent taxpayer money without restraint or care about debt. This is one area where everyone is guilty.
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