This is a record that the United States would have done without before the inauguration, on January 20, of Donald Trump. Between September and December, the country's deficit reached $711 billion, up 39% year-on-year. This level represents “a record for the first three months of the fiscal year”commented a ministry official to journalists.
It was also fueled by expenses « records » : almost 1,800 billion dollars over three months, up 11% compared to the same period last year. At the same time, revenues fell by 2%. Among the spending items that have increased the most are those related to pensions as well as the health of low-income and elderly people (Medicare and Medicaid programs), as well as defense due to a “increased activity and maintenance operations”according to the head of the Treasury Department. The federal government also spent more to deal with the damage from the powerful and deadly hurricanes Helene and Milton at the end of September and the beginning of October. The interest on the debt has increased the deficit, while the rates at which the State borrows have soared.
Cut federal government spending
These data are published a few days before Donald Trump's return to the White House. The president-elect, who is due to take office on January 20, has reiterated his desire to continue reducing taxes while slashing federal government spending. Elon Musk, appointed by the Republican to head a commission for government efficiency, who had assured that he could reduce federal public spending by two thousand billion dollars, estimated that saving half as much would already be a “ great result.”
He also explained that he had identified numerous expenditure items in which to cut, without detailing them. “It’s like being in a room full of targets, you can close your eyes and be sure you won’t miss the mark.”he described. In the past, he had notably considered “massive staff reductions in the federal bureaucracy”, however promising initial conditions “decent”.
