Investing.com — The U.S. federal government’s $6.8 trillion spending in fiscal 2024 is unlikely to see significant cuts next year, despite calls for restraint, as structural and political obstacles remain, analysts say.
Mandatory spending, which includes programs like Social Security and Medicare, accounted for $4.1 trillion in 2024. Economists at Wells Fargo (NYSE:) said reducing these outlays is improbable given their enduring popularity and the political risk of curbing benefits for senior citizens.
Social Security alone cost $1.4 trillion, while Medicare outlays reached $900 billion. Medicaid and other mandatory programs, including veterans’ benefits and retirement pay, added another $800 billion to the bill.
Interest payments on the national debt, which totalled $950 billion, cannot be reduced without risking a financial crisis, the report said.
Discretionary spending, totalling