Fiscal Tug-of-War: Trump's Spending Hikes Challenge Cost-Cutting Agenda

Despite President Trump's cost-cutting promises led by Elon Musk, government spending increased in his first month back. The U.S. Treasury data reveals heightened spending on health, retirement, and interest payments, overshadowing savings from frozen foreign aid and job cuts. Experts cite structural fiscal imbalances as persistent challenges.

The U.S. government's spending under President Donald Trump saw an uptick during his initial month in office, suggesting challenges to his cost-slashing agenda. Despite significant reductions like foreign aid freezes and workforce downsizing, expenses on health, retirement, and mounting interest payments overshadowed any savings, according to a Reuters analysis of federal data.

Records from the Treasury Department show increased spending between January 21 and February 20, totaling about $710 billion, compared to $630 billion during the same period last year. Economists emphasize the pressure from an aging population and unresolved debt. Trump's advisors, including tech giant Elon Musk, claim savings, but they struggle against these structural challenges.

Efforts to reduce government waste continue with the Department of Government Efficiency identifying potential savings, though criticism highlights potential data mishandling and privacy concerns. As Trump vows not to cut benefits like Social Security and Medicare for seniors, fiscal prudence remains a contentious strategy amid escalating national obligations.

(With inputs from agencies.)