Treasury touts progress reducing federal spending under Trump administration

The Treasury Department touts progress in cutting federal spending since Pres Donald Trump He returned to the White House in January.

Treasury officials are touting data showing a decline in year-over-year federal spending growth compared to the last full year of the Biden administration. Trump administration data shows that federal spending rose 7.1% year over year in the second quarter of 2024, before accelerating to 28.5% in the third quarter and 10.9% in the fourth quarter.

In the first quarter of 2025, when power was transferred between the Biden and Trump administrations, spending rose 8.5% year over year. This slowing trend has continued in the last two quarters, with federal expenditures rising just 0.2% in the second quarter of 2025 and expenditures falling 2.5% in the third quarter of the year, according to the Treasury Department.

“While a whole year Budget deficit “It was a positive surprise, reaching $1.77 trillion for fiscal year 2025, or $41 billion less than the previous year, but the number does not reflect the significant improvement over the year, especially for federal expenditures,” said Joe LaVorgna, advisor to Treasury Secretary Scott Bessent.

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LaVorgna added, “Fundamental trends point to further improvement in the U.S. fiscal position in the near future.”

He added, “The last two quarters of… Biden term It accounted for a staggering 74% of last year’s budget deficit, which “effectively saddled president Trump with a large deficit for the fiscal year” given that the fiscal year was half over when he took office.

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Besant appeared on FOX Business Network’s “KudlowWednesday and discussed reducing the budget deficit and federal spending since Trump took office.

“Contrary to what everyone said, for the fiscal year last year, we had a smaller deficit than we had the previous fiscal year,” Besant said.

“When people ask you how to lose weight, you eat less and exercise more,” says Warren Buffett. “How do you control the budget deficit?” Bessant added, “You spend less or you control spending and grow more.”

US debt is expected to rise to 120% of GDP as the federal deficit rises over the next decade under new forecasts.

Bessent said he wants to see federal spending restricted to reduce the deficit. (Elizabeth Frantz/Reuters/Reuters Images)

“If we can keep spending flat or down and achieve at least 5% growth, it will probably be higher than our expectations Deficit to GDP“Besant said.

“It finished the fiscal year with five ahead, down from 6.4% and 6.5% which was the worst when we weren’t in a recession, we weren’t at war, and I think we can make significant progress again.

“Hopefully we can be top five or something with four next year.”

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Besant previously said he would like to see the deficit-to-GDP ratio at around 3%, a more sustainable level than what has happened in recent years.