For all the endless talk about “draconian” cuts, federal spending is running $172 billion ahead of last year, according to the Monthly Treasury Statement released Monday. And that includes a substantial increase in fraud-riddled Medicaid spending.
And spending continues to outpace increases in revenues, which means the deficit this year is now on track to top $2 trillion. The last time that happened was in the middle of the COVID-19 spending splurge.
To be sure, it’s not all bad news. Income and payroll taxes are running 6% ahead of last year, suggesting that – despite the doomsaying by Democrats and the media – the economy is creating more and better-paying jobs.
Trump’s tariffs are also bringing in much more revenue. They’re up $55 billion so far this fiscal year, compared with the same months in fiscal year 2025. That’s a 51% jump. (And a tripling from two years ago.)
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