Waste of the Day: Federal Deficit Is Almost $2 Trillion

Topline: The federal deficit was $1.8 trillion in fiscal year 2025, according to preliminary estimates published by the Congressional Budget Office. That’s $8 billion less than FY 2024, but when discussing numbers that large, it’s almost unchanged.

What the federal deficit really means

When the government spends more money than it collects, the national debt increases. It is now approaching $38 trillion, or over $110,000 per person in America.

The deficit is the annual shortfall where the government spends more than it takes in, while the debt is the total, accumulated amount the government owes.

Key facts: The government spent over $7 trillion in FY25 but collected over $5 trillion in taxes and other revenue.

Spending was up $301 billion compared to FY24, or $104 billion when considering inflation.

FY25 lasted from Oct. 1, 2024, to Sep. 30, 2025. Joe Biden was president for nearly four months in that span, and Donald Trump was president for over eight months. The deficit increased most rapidly at the start of Trump’s term. From January to March 2025, the government spent over $500 billion more than it collected.

Most of the increased spending came from Social Security, which has more beneficiaries than in 2024 and increased payments to adjust for the cost of living. Medicare and Medicaid also face increased health-care costs.

Agencies like the Department of Defense and Veterans Affairs also increased their spending. The Department of Education, Small Business Administration and Federal Deposit Insurance Corporation dramatically cut their spending this year.

Revenue

The largest source of government revenue was $2.7 trillion from individual income taxes, a 10% increase from FY24. Corporate income taxes decreased by 15%. Customs duties — which include tariffs — totaled $195 billion, or $118 billion more than in FY24.

The last time the federal government had a budget surplus was in 2001 under President Bill Clinton.

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Summary: For over 20 years, the one constant between presidential administrations has been the government’s refusal to spend within its means.

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This article was originally published by RealClearInvestigations and made available via RealClearWire.