The U.S. government spent $173 billion more than it collected in revenues in November. But as bad as that sounds and is, it is nevertheless better than the $193 billion deficit posted in October and the $364 billion deficit posted in November last year in the final months of former President Joe Biden‘s dreadful, profligate presidency. Expiring COVID-19-era spending and President Donald Trump‘s tariffs reduced the federal deficit as a percentage of gross domestic product from 6.3% in fiscal 2024 to 5.9% in fiscal 2025. It’s a real improvement that can be sustained only if Trump and Congress stanch the spending spigots and do not open them again.

The largest drivers of our federal deficit, both in terms of total spending and spending growth, remain the two largest entitlement programs: Social Security and Medicare. The federal government paid out $1.6 trillion in Social Security benefits in fiscal 2025, up 8.4% from the year before. Medicare spending also grew at an unhealthy 8.5% clip, rising to $992 billion.