The U.S. Treasury Building can be seen on the Washington Monument on January 21, 2025 in the cold and winter of Washington DC.
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U.S. debt and deficit problems worsen during the presidency Donald TrumpIn its first month of tenure, despite a budget shortage in February, it passed the $1 trillion mark, even if the fiscal year is not halfway through.
Although revenues still far outweigh revenues, government spending has slightly decreased monthly, according to a statement from the Treasury Department. The deficit totaled more than $3007 billion this month, almost 2½ times that of January and 3.7% higher than in February 2024.
A Treasury spokesman said receipts and expenditures set records for the month.
During the year, the deficit totaled $11.5 trillion in the first five months of fiscal 2025. Total is about $318 billion higher than the span in 2024, about 38% higher, and set records for this period.
The net cost of raising funds for $36.2 trillion in national debt is as low as $74 billion this month. However, total net interest payments so far have grown to $396 billion, second only to defense and health. Social Security and Medicare are the biggest costs in the U.S. budget.
Deficits expand in the last three years of former president Joe BidenThe S term grew from $1.38 trillion to $1.83 trillion.
Trump has made the administration’s Treasury Department a priority since taking office. Since taking over, he has created the so-called Ministry of Government Efficiency Elon Musk. In addition to early retirement incentives, the Advisory Committee also leads work in multiple departments. A Treasury spokesman said Doge’s efforts had no obvious impact yet, but forwarded further comments to a group led by Musk.
Meanwhile, Trump hopes to expand the Tax Cuts and Jobs Act, which he led during his first administration. While Trump touts the growth that would result from reducing tax revenue, multiple think tanks say renewal of the bill will also increase the deficit for the next decade by $3.3 trillion.
