Planned Budget Cuts and Impact

Jim VandeHei and Mike Allen review Trumps budget cuts. The implication here is it is near impossible to achieve the dramatic cuts without imposing severe penalties on the US Citizenry, The attempt is to balance the budget so as intakes equal outtakes of funds. Except Trump does not want to fix his 2017 tax break. Passed under reconciliation, supposedly to pay for itself, and did not pay for itself. Instead, Trump and Republicans will cut spending in programs so as to keep the 2017 Tax Break. This is one easy fix which Trump does not want to do.

There is some deficit spending which should be fixed. The authors do call some of them out. Their cuts are small and will not have a large impact. The authors also explain this in more detail than I will do here. It is a good read!

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Behind the Curtain: Hard truths about Trump budget cuts, AXIOS

President Trump, Elon Musk, and their band of DOGE budget-cutters celebrate daily, even hourly targets to cut U.S. spending on everything from foreign aid to FAA personnel.

• Trump himself has teased a balanced budget — an impossibility without historic cuts to America’s most popular programs, such as Social Security.

Why it matters: Their proposed cuts are but drips of water in America’s overflowing bucket of debt — $36 trillion and counting. In fact, most days, America racks up more interest on its debt — $3 billion per day! — than DOGE can find in savings. That leaky bucket is the reality of your nation’s finances.

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 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 showing 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” (417 out of 1,125) were not 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.

Musk and DOGE suck up a lot of attention for doing what former Sen. Alan Simpson (R-Wyo.) did by needling “the boneheads of both parties,” and the late Sen. William Proxmire (D-Wis.) did with his Golden Fleece Award: highlighting the need for radical change, and the absurdity of many U.S. programs. Even Musk critics should applaud him for getting the public to pay attention to massive bugs in the federal system.

• But the Trump team is also using the guise of budget-cutting to eliminate jobs or areas they disagree with — or that undermine their ambitions. To date, most of the proposed cuts fall into this bucket.
• In doing so, they’re also usurping the power of Congress — which, under the Constitution, sets U.S. spending priorities and budgets. That’s producing court fights.

📊 State of play: The idea of DOGE is popular: A poll released yesterday by Harvard’s Center for American Political Studies and The Harris Poll found 72% of U.S. registered voters polled online support the existence of a federal agency focused on efficiency.

• Jamie Dimon, JPMorgan Chase CEO, told CNBC in Miami on Monday that while any “bureaucracy pushes back on everything,” DOGE “needs to be done,” and should be “not just about the deficit. It’s about building the right policies, procedures and the government we deserve.”

So Trump and his aides correctly calculate that both the cuts and the tales of government insanity are popular with the vast majority of Americans. Even if the reality isn’t quite as sexy:

• No, tens of millions of dead people aren’t getting Social Security checks. That’s a known computer coding quirk that wasn’t fixed because of the cost.
• No, DOGE didn’t save $8 billion on a contract by Immigration and Customs Enforcement (ICE). The New York Times Upshot discovered that DOGE was hanging its hat on an earlier database error that had been corrected to say $8 million. $2.5 million had been spent — so canceling the contract saved $5.5 million at most.
• No, the U.S. didn’t send $50 million worth of condoms to Hamas, as Trump said on-camera. “That’s a LOT of condoms,” Musk joked. In fact, the International Medical Corps was providing medical and trauma services in Gaza, including family planning programming and emergency contraception.

Reality check: Of the roughly $7 trillion the U.S. spent in 2024 (as calculated by Axios chief economic correspondent Neil Irwin)…

• 60% went to mandatory programs — including Social Security, Medicare, Medicaid, veterans’ benefits, unemployment insurance and SNAP (Supplemental Nutrition Assistance Program).
• 13% went to defense.
• 13% to interest payments.
• 14% for discretionary spending — leaving Trump not quite $1 trillion.

So when you consider where federal money really goes, most DOGE oddities and outrages amount to rounding errors in a sea of government obligations.

There is more to this piece which discusses how Trump promises a balanced budget and what would have to happen to deliver such.