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Investing.com - U.S. government spending is higher since President Donald Trump returned to power in January, despite efforts by the administration to downsize the federal workforce, according to the Wall Street Journal.
The White House, particularly through the Elon Musk-led Department of Government Efficiency, has been moving to cut jobs, end contracts and scrap diversity programs. DOGE has claimed that its actions have led to $150 billion in savings for American taxpayers.
But the Journal claims that its analysis suggests that the efforts have yet to greatly impact the government's bottom line. Citing daily financial statements issued by the Treasury Department, the paper said government spending since Trump's inauguration had amounted to $154 billion more than in the same period of 2024 during the prior administration of President Joe Biden.
Social Security payments this year are especially higher, up by $32.7 billion since Trump returned to power, the WSJ said, adding that this uptick was driven by more than a million new beneficiaries and a mandated 2.5% cost-of-living adjustment.
Medicare and Medicaid spending levels are also above where they were a year ago, expanding by around $29 billion since Trump was sworn in due to rising enrollments and healthcare costs, the WSJ found.
Meanwhile, interest payments on the national debt were $25.5 billion higher since Trump's return compared to the same timeframe in 2024 because of elevated interest rates and growth in the debt pile, the WSJ said.
However, its analysts found that DOGE did secure an almost flatlining in spending for several weeks in February and March at the Transportation Security Administration, while the Department of Education -- which a March executive order targeted for closure -- has seen spending decrease by roughly $4 billion.
However, the paper said the full impact of DOGE's cuts will likely be displayed over a longer period of time.