Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Economy

Will federal government spending be slashed in 2025?

admin by admin
December 21, 2024
in Economy
0
Will federal government spending be slashed in 2025?
0
SHARES
8
VIEWS
Share on FacebookShare on Twitter

Investing.com — The U.S. federal government’s $6.8 trillion spending in fiscal 2024 is unlikely to see significant cuts next year, despite calls for restraint, as structural and political obstacles remain, analysts say.

Mandatory spending, which includes programs like Social Security and Medicare, accounted for $4.1 trillion in 2024. Economists at Wells Fargo (NYSE:WFC) said reducing these outlays is improbable given their enduring popularity and the political risk of curbing benefits for senior citizens.

Social Security alone cost $1.4 trillion, while Medicare outlays reached $900 billion. Medicaid and other mandatory programs, including veterans’ benefits and retirement pay, added another $800 billion to the bill.

Interest payments on the national debt, which totalled $950 billion, cannot be reduced without risking a financial crisis, the report said.

Discretionary spending, totalling $1.8 trillion, offers limited room for cuts. Defence spending, which represented nearly half of that sum, stands at 3% of GDP, a post-Cold War low.

“A major reduction in what Congress allocates to the Pentagon does not seem likely in today’s geopolitical environment,” the note added.

Non-defense discretionary spending, funding agencies like NASA, the IRS, and border security, is already near historical lows at 3% of GDP.

The compensation of federal employees, representing less than 6% of total spending, also offers little fiscal relief, with half of the workforce concentrated in defense, veterans’ affairs, and homeland security.

Any significant spending cuts would require congressional action, often requiring 60 Senate votes. While the president can reverse executive actions, economists argue the savings would pale in comparison to the $26 trillion deficit projected over the next decade.

“We think some reductions in federal spending and employment on the margin are plausible over the next couple of years, but probably not on the scale that they will have large implications for a U.S. economy.”

This post appeared first on investing.com

Previous Post

North Korea’s Kim Jong Un calls for stronger rural economies, state media says

Next Post

Exclusive-Fed’s Barr seeks legal advice amid speculation Trump might remove him, sources say

admin

admin

Next Post
Exclusive-Fed’s Barr seeks legal advice amid speculation Trump might remove him, sources say

Exclusive-Fed’s Barr seeks legal advice amid speculation Trump might remove him, sources say

Trending News

There are indications the “Trump trade” has commenced, BCA Research says

There are indications the “Trump trade” has commenced, BCA Research says

October 26, 2024
MS stock jumps 3% as Morgan Stanley smashes Q3 earnings expectations

MS stock jumps 3% as Morgan Stanley smashes Q3 earnings expectations

October 16, 2024
Analysis: OPEC+ faces uphill battle to maintain oil market stability

Analysis: OPEC+ faces uphill battle to maintain oil market stability

July 21, 2025
Subscribe to Insightful Word


    Recent News

    Coinbase eyes digital asset expansion with $2B convertible note offering

    Coinbase eyes digital asset expansion with $2B convertible note offering

    August 5, 2025
    Tesla’s European sales slump deepens as BYD accelerates growth

    Tesla’s European sales slump deepens as BYD accelerates growth

    August 5, 2025
    Here’s the Palantir stock price if market cap hits $1 trillion

    Here’s the Palantir stock price if market cap hits $1 trillion

    August 5, 2025
    Pfizer stock pops as big pharma giant delivers post-COVID comeback

    Pfizer stock pops as big pharma giant delivers post-COVID comeback

    August 5, 2025

    Recent News

    Coinbase eyes digital asset expansion with $2B convertible note offering

    Coinbase eyes digital asset expansion with $2B convertible note offering

    August 5, 2025
    Tesla’s European sales slump deepens as BYD accelerates growth

    Tesla’s European sales slump deepens as BYD accelerates growth

    August 5, 2025

    Latest News

    • Coinbase eyes digital asset expansion with $2B convertible note offering
    • Tesla’s European sales slump deepens as BYD accelerates growth
    • Here’s the Palantir stock price if market cap hits $1 trillion

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.