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Washington, D.C. is a corrupt city. And this is the evidence we needed.

And now the White House was completely vindicated when this incriminating report surfaced.

Fiscal Year 2025 Deficit Snapshot

The Congressional Budget Office forecasted on Wednesday that the U.S. federal government will close out the recently ended fiscal year with a $1.8 trillion deficit. This marks a modest dip of roughly $8 billion from the previous fiscal year 2024, marking the final complete year of President Biden’s term.

According to the CBO, revenues from taxes and fees climbed by $308 billion, slightly edging out the $301 billion jump in expenditures.

A notable chunk of that spending growth—$80 billion—went toward interest on the national debt, which crossed the historic $1 trillion threshold for the first time. Stripping away this interest surge, incoming revenues would have far exceeded the fresh outlays.

Additionally, tariffs implemented under President Trump contributed an extra $118 billion to federal coffers relative to 2024 levels.

Major Drivers of Spending Expansion

Social Security led the charge in new expenditures, ballooning by $121 billion, fueled primarily by inflation-driven cost-of-living adjustments and a steady rise in beneficiaries.

This figure was further boosted by legislation enacted and signed by Congress and President Biden last year, extending Social Security retirement benefits to certain public sector workers with existing pensions.

Healthcare programs also saw substantial hikes: Medicare expenditures increased by $72 billion, and Medicaid by $52 billion, both reflecting escalating medical costs. The Defense Department’s budget expanded by $38 billion—a 5% uptick that lagged behind the growth in major entitlement areas.

Meanwhile, Homeland Security’s outlays swelled 28%, largely tied to disaster relief efforts. At the Environmental Protection Agency, spending skyrocketed 167% as the outgoing Biden team accelerated the distribution of $20 billion to preempt potential restrictions from the incoming Trump administration.

Revenue Boosts and Lingering Fiscal Worries

On the income front, President Trump’s tariffs supercharged customs duties by 153%, lifting collections from $77 billion in 2024 to $195 billion this fiscal year. Individual income taxes grew 10%, though corporate tax receipts dropped 15%.

The CBO releases monthly projections on federal finances, with the Treasury Department set to unveil the definitive figures shortly.

Despite these revenue gains, the broader trajectory paints a sobering picture, warns Maya MacGuineas, president of the Committee for a Responsible Federal Budget. “While the deficit didn’t rise from last year, it didn’t fall either, and we continue to borrow far too much,” she said.

“We are on track to borrow nearly $2 trillion per year for the next decade. How can anyone think this is sustainable?”

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