Political Post about the Federal Budget Deficit

Federal Policy Budget Deficit Policy Analysis

Problem:

The problem is that federal spending over the last 12 months has exceeded 7.2 trillion dollars. There is almost a 2 trillion-dollar yearly deficit and 1 trillion in yearly interest payments. Federal spending over the last year has increased by 12% from the year before.

Solution: The solution to the problem may be found in the healthcare spending of the Veterans Administration, Medicaid, and Medicare. This in itself is almost 3 trillion dollars. The Idea is for the government to be able to negotiate drug prices, medical care, and hospital bills directly with those sources and cut reimbursement rates on superfluously high healthcare costs. I recommend cutting reimbursement costs by at least 10% on average. That could save at least 200 billion dollars, lowering the deficit. A more aggressive approach may be needed, but this is one possible solution. Another possible solution is cutting COVID funding by 20%, which would save at least an additional 1 billion dollars. Additional ways to save money include not buying out leases for wind farms, which would save 4 billion dollars in Maryland alone; not paying for dirty and uneconomically viable coal mines/ coal power plants to run; and finally closing some tax loops holes/ tax credits for those with over 1 billion dollars of wealth. These solutions should help decrease the budget deficit and solve a potential ticking time bomb. Additionally, I recommend growing the economy, which will increase tax revenue and eventually lower the budget deficit.

Bibliography

Congressional Budget Office. “Introduction to CBO.” Congressional Budget Office, https://www.cbo.gov/about/overview. Accessed 8 Oct. 2026.

Gurley, Lauren Kaori. “Layoffs at ‘Extremely Low Levels’ Despite Americans’ Gloom About the Economy.” The Washington Post, 8 Oct. 2026, https://www.washingtonpost.com/politics/2026/10/08/layoffs-extremely-low-levels-despite-americans-gloom-about-economy/.

“U.S. Budget Deficit Jumps to Nearly $2 Trillion.” The Wall Street Journal, 8 Oct. 2026, https://www.wsj.com/politics/policy/u-s-deficit-clocks-in-just-under-2-trillion-7e8e9eb3.