Federal Deficit Continues to Rise

Tech entrepreneur Elon Musk is putting together cost-cutting proposals for the Trump administration to consider. Yet the new Department of Government Efficiency (doge) has yet to reduce the federal deficit overall.

The Treasury Department’s latest monthly statement shows the federal government has already spent $1.1 trillion more than it has collected in tax revenue this fiscal year, which started in October. This indicates it is headed toward a $1.9 trillion deficit this fiscal year—a new record.

Runaway spending: A breakdown of United States government spending during the first five months of fiscal year 2025 shows:

• Social Security spending is up $38 billion because of higher cost-of-living and a rise in the number of beneficiaries.
• Medicare spending is up $20 billion because of increased enrollment.
• Medicaid spending is up $15 billion due to rising costs.
• Military spending is up $27 billion due to international conflicts.
• Interest payments on America’s ballooning $36 trillion national debt are also up $44 billion.

Last month, doge announced it had slashed $7 billion in wasteful spending, but these cuts are nowhere near dramatic enough to offset the rising costs of other programs.

Deeper and deeper: The Congressional Budget Office expects the U.S. will owe creditors roughly $59 trillion by 2035 unless drastic changes are made. That’s adding $23 trillion to the debt in only 10 years.

Since interest rates are high, the nation’s interest payments are becoming the fastest-growing part of the federal budget. By 2044, it is believed that the government will spend more on interest than on everything else except entitlements (i.e. Social Security, Medicare, Medicaid, means-tested welfare, etc).

Prophecy says: God instructed the Israelites that blessings come from obedience to His laws, just as curses come from disobedience. In Deuteronomy 28, God warned that debt problems are one of the many curses of disobedience. Specifically, God warned that if the Israelites turned away from Him, strangers would lend them money, but they would not lend to others.

America’s economic woes are not the cause of its problems. Instead, they are one of the many symptoms of the greater problem of rebellion against God’s law.

Learn more: Read our Trends article “Why the Trumpet Watches America’s Economic Collapse.”