President Donald Trump and his advisor Elon Musk have recently emphasized their commitment to achieving a balanced federal budget, with both making public statements supporting this goal on their respective social media platforms.
However, financial analysis indicates their proposed policies would likely increase the federal deficit. According to the nonpartisan Committee for a Responsible Federal Budget (CRFB), Trump’s proposed tax cuts – including extensions of his 2017 tax law and eliminations of taxes on tips, overtime pay, and Social Security benefits – would add between $5 trillion and $11 trillion to the deficit over 10 years.
The administration’s cost-cutting focuses primarily on specific areas like foreign aid and the Department of Education. Foreign aid currently represents 1.2% of the federal budget ($71.9 billion last year), while education spending accounts for approximately 3%.
The House recently approved a budget featuring $4.5 trillion in tax cuts and a $4 trillion debt limit increase, with unspecified spending cuts intended to partially offset these costs. Representatives have indicated they’re considering reductions to Medicaid, SNAP benefits, and clean energy funding.
Budget experts note that meaningful deficit reduction would require addressing major spending categories like Social Security, Medicare, Medicaid, defense, veterans’ benefits, and debt interest payments, which collectively represent 75% of federal spending. Trump has pledged not to reduce Social Security and Medicare benefits, though he has mentioned addressing “theft and bad management” in these programs.
Adding to the fiscal complexity, Republican leaders are proposing significant increases to military spending, with the House suggesting a $100 billion increase and the Senate advocating for a $150 billion boost to the current $825 billion defense budget. Additional funding of approximately $150 billion is being considered for border security and immigration enforcement.
Congressional input on these proposals remains divided. Rep. Kevin Hern (R-Okla.) supports the tax agenda while acknowledging details on offsetting costs are still being developed. Meanwhile, Sen. Rand Paul (R-Ky.) voted against advancing the Senate’s budget resolution, citing concerns about spending increases.
The Department of Government Efficiency, led by Musk, continues to target specific agencies and initiatives for reduction, including the U.S. Agency for International Development and various diversity, equity, and inclusion programs across government departments.
About the author
US Supreme Court Rejects Trump Administration’s Request to Halt Foreign Aid Payments
A divided US Supreme Court on Wednesday rejected the Trump administration's request to maintain a freeze on billions of dollars in congressionally approved foreign aid. The Court did not specify when the funds must be released, allowing the administration to continue challenging the issue in lower courts. The 5-4 ruling saw Chief Justice John Roberts joining Justices Amy Coney Barrett, Elena Kagan, Sonia Sotomayor, and Ketanji Brown Jackson in the majority. Justices Samuel Alito, Clarence Thomas, Neil Gorsuch, and Brett Kavanaugh dissented. The majority noted that since a court-ordered deadline to disburse the funds had already passed, lower courts should clarify what obligations the government must fulfill to comply with the temporary restraining order. The ruling doesn't require immediate payment of up to $2 billion in foreign aid; it simply allows the district court to potentially compel those payments with […]
Top Diplomat Fired After Questioning Trump’s Knowledge on History
New Zealand has dismissed its most senior envoy to the United Kingdom following remarks that questioned US President Donald Trump's understanding of history. During an event in London on Tuesday, High Commissioner Phil Goff compared efforts to end the Russia- Ukraine war to the 1938 Munich Agreement, which permitted Adolf Hitler to annex part of Czechoslovakia. Mr. Goff recalled Sir Winston Churchill's criticism of the agreement, then said, "President Trump has restored the bust of Churchill to the Oval Office. But do you think he really understands history?" New Zealand's Foreign Minister Winston Peters called his comments "deeply disappointing" and said they made his position "untenable." Goff's remarks came after Trump paused military aid to Kyiv following a contentious exchange with Ukrainian President Volodymyr Zelensky in the Oval Office last week. The High Commissioner contrasted Trump with Churchill who, while […]
“I Thought We Were in Hell”: Aid Worker Survives Russian Missile Strike on Ukrainian Hotel
An aid worker described surviving a Russian missile attack on a hotel in Ukraine as feeling like an "apocalyptic movie." Karol Swiacki, founder of Bournemouth-based Ukraine Relief, and his team were leaving dinner when caught in the attack on Kryvyi Rih overnight. The strike killed at least four people and injured 31, according to the city's regional governor. Kryvyi Rih is Ukrainian President Volodymyr Zelensky's hometown. Zelensky is currently attending an EU emergency summit where he thanked European leaders for their "strong support." Speaking to BBC Radio Solent, Swiacki explained he had traveled to Ukraine to deliver supplies to shelters, orphanages, and schools. He has previously won a BBC award for his aid work in Ukraine. "We had a nice dinner together and were planning to go to a school in the morning," Swiacki told listeners. "We were about to […]
Senate Drama Erupts as Sexual Harassment Claims Against Akpabio Get Thrown Out Despite Court Order!
Senate President Godswill Akpabio has publicly addressed allegations of sexual harassment made by Senator Natasha Akpoti-Uduaghan, firmly denying any such conduct occurred. "At no time did I ever attempt any sexual harassment," Akpabio stated, emphasizing his respect for women, citing his upbringing by a single mother and noting that he has four daughters. He also referenced receiving a "most gender-friendly governor" award during his 2007-2015 tenure. On Wednesday, the Senate Committee on Ethics, Code of Conduct, and Public Petitions dismissed Akpoti-Uduaghan's petition against Akpabio. The committee's decision came amid controversy over procedural matters. The situation began when Akpoti-Uduaghan presented a petition at a plenary session attended by a delegation of UK parliamentarians led by Kate Ofunne Osamor. Senate leadership, including Leader Opeyemi Bamidele and Chief Whip Tahir Monguno, attempted to convince Akpabio to reverse his decision to allow investigation, citing […]
Trump Delays Tariffs to Automakers from Canada and Mexico for One Month
The White House announced Wednesday that President Donald Trump has granted automakers a one-month exemption from his 25% tariffs on Canada and Mexico, provided they comply with existing free trade rules. This temporary relief halted Wall Street's steepest decline in nearly three months. The administration is also considering exemptions for other products from the tariffs that took effect Tuesday. However, Trump emphasized he is not ending his trade pressure campaign against both countries, which he says is aimed at reducing fentanyl smuggling. Following a conversation with Canadian Prime Minister Justin Trudeau, Trump stated on Truth Social: "He said that it's gotten better, but I said, 'That's not good enough.' The call ended in a 'somewhat' friendly manner!" Public data shows just 0.2% of fentanyl seized in the U.S. comes from Canada, with the majority entering through the southern border. A […]
US Charges 12 Chinese Nationals in International Hacking Operation
US prosecutors have charged 12 Chinese nationals for participating in an alleged hacking scheme that sold the data of US-based dissidents to the Chinese government. According to the Justice Department (DOJ), this "state-sponsored" operation targeted government agencies, including the US Treasury, an American religious organization critical of China, and a Hong Kong newspaper considered opposed to the Chinese government. The charges, unsealed in a Manhattan federal court on Wednesday, include two officers from China's Ministry of Public Security. The hackers, appearing to represent a private company called i-Soon, allegedly charged Chinese agencies between $10,000 and $75,000 for each "exploited" email inbox. "Today, we are exposing the Chinese government agents directing and fostering indiscriminate and reckless attacks against computers and networks worldwide," said Sue J Bai, who heads the DOJ's National Security Division. The hackers reportedly conducted computer intrusions both under […]
Related
US Supreme Court Rejects Trump Administration’s Request to Halt Foreign Aid Payments
A divided US Supreme Court on Wednesday rejected the Trump administration's request to maintain a freeze on billions of dollars in congressionally approved foreign aid. The Court did not specify when the funds must be released, allowing the administration to continue challenging the issue in lower courts. The 5-4 ruling saw Chief Justice John Roberts joining Justices Amy Coney Barrett, Elena Kagan, Sonia Sotomayor, and Ketanji Brown Jackson in the majority. Justices Samuel Alito, Clarence Thomas, Neil Gorsuch, and Brett Kavanaugh dissented. The majority noted that since a court-ordered deadline to disburse the funds had already passed, lower courts should clarify what obligations the government must fulfill to comply with the temporary restraining order. The ruling doesn't require immediate payment of up to $2 billion in foreign aid; it simply allows the district court to potentially compel those payments with […]
Top Diplomat Fired After Questioning Trump’s Knowledge on History
New Zealand has dismissed its most senior envoy to the United Kingdom following remarks that questioned US President Donald Trump's understanding of history. During an event in London on Tuesday, High Commissioner Phil Goff compared efforts to end the Russia- Ukraine war to the 1938 Munich Agreement, which permitted Adolf Hitler to annex part of Czechoslovakia. Mr. Goff recalled Sir Winston Churchill's criticism of the agreement, then said, "President Trump has restored the bust of Churchill to the Oval Office. But do you think he really understands history?" New Zealand's Foreign Minister Winston Peters called his comments "deeply disappointing" and said they made his position "untenable." Goff's remarks came after Trump paused military aid to Kyiv following a contentious exchange with Ukrainian President Volodymyr Zelensky in the Oval Office last week. The High Commissioner contrasted Trump with Churchill who, while […]
“I Thought We Were in Hell”: Aid Worker Survives Russian Missile Strike on Ukrainian Hotel
An aid worker described surviving a Russian missile attack on a hotel in Ukraine as feeling like an "apocalyptic movie." Karol Swiacki, founder of Bournemouth-based Ukraine Relief, and his team were leaving dinner when caught in the attack on Kryvyi Rih overnight. The strike killed at least four people and injured 31, according to the city's regional governor. Kryvyi Rih is Ukrainian President Volodymyr Zelensky's hometown. Zelensky is currently attending an EU emergency summit where he thanked European leaders for their "strong support." Speaking to BBC Radio Solent, Swiacki explained he had traveled to Ukraine to deliver supplies to shelters, orphanages, and schools. He has previously won a BBC award for his aid work in Ukraine. "We had a nice dinner together and were planning to go to a school in the morning," Swiacki told listeners. "We were about to […]
British Man Faces 19 Years In Russian Prison After Capture In Ukraine War
A British man fighting for Ukraine has been sentenced to 19 years imprisonment by a Russian court after being captured during combat operations. James Scott Rhys Anderson, 22, received the sentence following a three-day closed military trial in Kursk, according to the regional court press service on Wednesday. The court found him guilty of "mercenary activities" and a "terrorist act." Anderson, reportedly captured in November during Ukraine's cross-border offensive in Russia's Kursk region, pleaded guilty to all charges. His sentence includes five years in prison before transfer to a penal colony for the remaining term. Court-released footage showed Anderson silently nodding after hearing his translated sentence. The United Kingdom's Foreign and Commonwealth Office issued a strong rebuke of the verdict, stating Anderson faced "false charges" and emphasizing international legal protections for prisoners of war. "Under international law, prisoners of war […]
North Korea Abruptly Cancels Tourism Weeks After Reopening Borders
North Korea has suspended tourist visits just weeks after allowing the first Western tourists to enter the country since its five-year closure. The country had sealed its borders in early 2020 during the Covid-19 pandemic and began gradually easing restrictions in mid-2023. While Russian visitors were permitted entry earlier in 2024, Western tourists were only allowed to visit the remote eastern city of Rason starting last month. Several tour companies have now announced that trips to the secretive nation have been cancelled indefinitely, with no explanation provided by North Korean authorities. "Just received news from our Korean partners that Rason is closed to everyone. We will keep you posted," China-based KTG Tours, which specializes in North Korean tourism, announced Wednesday on Facebook. Other agencies including Young Pioneer Tours and Koryo Tours have also confirmed the suspension. Young Pioneer Tours advised […]
Trump Spares Car Industry From New Tariffs Placed On Mexico and Canada
US President Donald Trump has granted temporary relief to automakers from the new 25% import tax on goods from Canada and Mexico, just one day after the tariffs were implemented. The White House announced the exemption while Trump continued criticizing Canada for allegedly failing to prevent drugs from entering the US. "Nothing has convinced me that it has stopped," Trump posted on social media following a call with Canadian Prime Minister Justin Trudeau about the economic disruption caused by the tariffs. The relief announcement helped US stock markets recover, with shares closing higher after two days of declines that had erased post-election gains in the S&P 500. The tariff exemption applies to vehicles manufactured in North America that comply with existing free trade agreement rules, which specify how much of a car must be produced in each country to qualify […]
Be the first to leave a comment