Federal spending rises despite DOGE efforts, WSJ finds

Seeking Alpha News (Fri, 11-Apr 12:10 PM)

Federal spending under the Trump administration has risen by $154B compared to the same period in 2024, despite the $150B in savings claimed by the Department of Government Efficiency, according to a Wall Street Journal analysis. 

The increase reflects challenges in curbing costs tied to mandatory programs and interest payments, which account for 73% of federal expenditures. The news outlet noted that DOGE’s efforts to slash contracts and jobs are still ongoing and have yet to make their full impact on the government's overall budget situation.

Mandatory programs like Social Security, Medicare, and Medicaid drove much of the spending surge, the Wall Street Journal reported. Social Security payments alone rose $32.7B due to a 2.5% cost-of-living adjustment and 1.3 million new beneficiaries. Medicare and Medicaid spending grew by $29B, while interest on the national debt increased by $25.5B, highlighting structural pressures that outpace DOGE’s cuts.

DOGE’s cost-cutting measures—including terminating 25,000 probationary workers and reducing foreign aid—yielded limited results, the Wall Street Journal found. Small wins included a $4B reduction at the Education Department. 

DOGE was put in place by the Trump administration to curtail government spending and has been operating under the supervision of billionaire businessman Elon Musk. The WSJ's analysis of spending is based on the Treasury Department's daily financial statements.

The Wall Street Journal emphasized that rising interest rates and legal challenges complicate DOGE’s agenda. A Supreme Court ruling reversed paused foreign-aid cuts, and buyout programs may have temporarily increased payroll costs. Analysts told the news outlet that meaningful savings would require years of sustained effort and favorable court outcomes, leaving the long-term impact of DOGE’s initiatives uncertain.