Wisconsin
Bondi gives ousted interim U.S. attorney new title, allows him to keep job
MADISON, Wis. (AP) — U.S. Attorney General Pam Bondi is allowing an ousted interim federal prosecutor to continue overseeing cases in Wisconsin with a new title in what’s becoming a familiar move in federal judicial districts across the nation as Democrats in the U.S. Senate delay confirmation votes on President Donald Trump’s appointees.
Bondi appointed Brad Schimel in November to a 120-day term as interim U.S. attorney for the Eastern District of Wisconsin, headquartered in Milwaukee. His term was set to expire Tuesday, according to a news release on the district’s website. The district’s federal judges could have allowed him to remain in the interim post, but they announced March 10 that they decided not to extend him.
The U.S. Attorney’s office in Milwaukee announced Wednesday that Bondi has named Schimel first assistant U.S. attorney in Milwaukee and that he’ll continue overseeing operations under that title.
Interim, acting or first assistant U.S. attorneys are running most of the nation’s 94 federal judicial districts as Senate Democrats hold up confirmation votes on presidential appointees. According to a list on the U.S. Department of Justice’s website, only 30 districts are currently led by a presidentially nominated and Senate-confirmed U.S. attorney.
First assistants like Schimel are currently running U.S. attorney’s offices in a dozen states, including California, New Mexico, Kentucky, Nevada, New York, Virginia, Vermont and Washington state, according to the list.
Schimel, a Republican, holds a law degree from the University of Wisconsin Law School. He served as the Waukesha County district attorney before winning election as Wisconsin attorney general in 2014. He lost a bid for a second term to Democrat Josh Kaul in 2018. He landed on his feet after that defeat, though, with outgoing Republican Gov. Scott Walker appointing him as a judge in Waukesha County.
He ran for the state Supreme Court last spring with the court’s ideological balance at stake. But despite Trump’s endorsement and millions in spending from billionaire Elon Musk, Schimel lost the race to liberal Susan Crawford.
Florida
Newly discovered Whitey Bulger writings show former FBI agent was framed, lawyers allege
FORT LAUDERDALE, Fla. (AP) — Attorneys are drawing on statements from a handwritten manuscript by the late mobster James “Whitey” Bulger in an effort to overturn a former FBI agent’s murder conviction, saying the crime boss’s own words show that the agent was framed.
Lawyers for former FBI agent John Connolly filed a motion in Miami-Dade Circuit Court on Monday seeking to vacate his conviction, citing what they describe as newly discovered evidence that prosecutors failed to disclose for years.
The material includes FBI reports documenting Bulger’s statements and the unfinished handwritten manuscript the FBI seized during a search of Bulger’s apartment after his 2011 arrest.
In their filing, Connolly’s lawyers say Bulger, who led Boston’s Winter Hill Gang, asserted in the documents that Connolly didn’t leak information to him that was used in the 1982 killing of businessman John Callahan in Miami, contradicting the prosecution’s case against Connolly. Instead, Bulger identified another FBI agent, John Morris, as his mole, and described Connolly as a “sacrificial lamb,” according to the filing.
Connolly, now 85, was convicted in Florida of second-degree murder and racketeering.
In the manuscript, Bulger wrote that he was a “criminal almost all of my life,” and described using inside tips to stay ahead of the law.
“I never thought the day would come that I’d be writing a story about my criminal activity,” Bulger wrote.
The attorneys claim Bulger was writing the manuscript to help clear Connolly’s name.
They also say Bulger’s writings and FBI statements made after the mobster’s arrest weren’t previously disclosed to the defense.
The material came to light after a longtime prosecutor involved in the Connolly case resigned from the Miami-Dade state attorney’s office following reports of misconduct that included granting favors to witnesses and coordinating witness testimony.
In 2024, Connolly’s lawyers received a letter from Miami-Dade Chief Assistant State Attorney Jose Arrojo informing them that a sealed envelope labeled “confidential” contained the Bulger manuscript and his statements to the FBI.
In their filing, Connolly’s lawyers accuse prosecutors of a general pattern of misconduct, arguing that they withheld evidence favorable to the defense in violation of constitutional requirements. Courts have previously found that some evidence in the case was improperly withheld, though they ruled it was not material enough to overturn the conviction.
Connolly’s attorneys say the newly surfaced material goes further, creating reasonable doubt about his guilt.
Connolly, who had been serving a 40-year sentence, was granted compassionate release in 2021 after a judge cited his terminal illness and the risks of COVID-19.
Connolly was a special agent with the FBI in Boston in July 1982 when mob hitman John Martorano shot Callahan in the back of the head and left his body in the trunk of a car at Miami International Airport.
Connolly was indicted on a first-degree murder charge 21 years later. At the time, prosecutors claimed Bulger and Stephen Flemmi ordered Callahan’s killing after Connolly told them the FBI was investigating Callahan’s ties to Bulger and his gang for the 1981 killing of Roger Wheeler, who owned World Jai Alai.
But in the manuscript and post-arrest FBI statements, Connolly’s lawyers claim Bulger stated that Connolly was framed by Morris, who was Connolly’s FBI supervisor.
“I am sure everyone close to me thought all the information I had came from (Connolly), Bulger wrote. “I didn’t discourage that thought — sadly for Connolly, he took the heat for warning me to take off and other things that had come from (Morris).”
Bulger accused Morris of becoming a “star witness” against Connolly to save himself. Morris testified against Connolly as part of a cooperation agreement that granted him immunity from prosecution.
While leading his gang, Bulger, who inspired Jack Nicholson’s character in the 2006 Martin Scorsese movie “The Departed” and was portrayed by Johnny Depp in the 2015 gangster drama “Black Mass,” also served as an FBI informant against the Mafia. Bulger denied that claim.
Pentagon seeks $200 billion in additional funds for the Iran war, AP source says
WASHINGTON (AP) — The Pentagon is seeking $200 billion in additional funds for the Iran war, a sizable amount that is certain to be met with questions from Congress, which would need to approve any new money.
The department sent the request to the White House, according to a senior administration official, who spoke on condition of anonymity to discuss the private information. Asked about the figure at a press conference Thursday, Defense Secretary Pete Hegseth did not directly confirm the amount, saying it could change.
“It takes money to kill bad guys,” Hegseth said.
But he said “we’re going back to Congress and our folks there to ensure that we’re properly funded.”
It’s an extraordinarily high number and comes on top of extra funding the Defense Department already received last year in President Donald Trump’s big tax cuts bill. Such a request would need to be approved by Congress, and it is not at all clear such spending would have political support.
Congress has been bracing for a new spending request but it is not clear the White House has transmitted the request for consideration. The new funding request was first reported by The Washington Post.
Any new funding would need to be approved by Congress, which has not authorized the war, and is showing growing unease with the military operation’s scope and strategy.
Congress is controlled by the president’s Republican Party but many of the more conservative lawmakers are also fiscal hawks, with little political appetite for big spending, on military operations or other matters. Most Democrats are likely to reject such a request and demand more detailed plans for military strategy and goals.
The requested amount would be a sizable boost to the Pentagon’s annual budget, which Congress approved at more than $800 billion for the current fiscal year.
That’s on top of some $150 billion that Congress gave the Defense Department in last year’s tax cuts bill, much of it for specific projects and overall upgrades to the Pentagon’s operations.
While some of the military’s biggest champions on Capitol Hill have welcomed new spending as a way to upgrade the U.S. defense capabilities in the face of emerging threats, others will certainly point to health care and other domestic needs that they view as more important priorities.
Pentagon seeks $200 billion in additional funds for the Iran war, AP source says
WASHINGTON (AP) — The Pentagon is seeking $200 billion in additional funds for the Iran war, a sizable amount that is certain to be met with questions from Congress, which would need to approve any new money.
The department sent the request to the White House, according to a senior administration official, who spoke on condition of anonymity to discuss the private information. Asked about the figure at a press conference Thursday, Defense Secretary Pete Hegseth did not directly confirm the amount, saying it could change.
“It takes money to kill bad guys,” Hegseth said.
But he said “we’re going back to Congress and our folks there to ensure that we’re properly funded.”
It’s an extraordinarily high number and comes on top of extra funding the Defense Department already received last year in President Donald Trump’s big tax cuts bill. Such a request would need to be approved by Congress, and it is not at all clear such spending would have political support.
Congress has been bracing for a new spending request but it is not clear the White House has transmitted the request for consideration. The new funding request was first reported by The Washington Post.
Any new funding would need to be approved by Congress, which has not authorized the war, and is showing growing unease with the military operation’s scope and strategy.
Congress is controlled by the president’s Republican Party but many of the more conservative lawmakers are also fiscal hawks, with little political appetite for big spending, on military operations or other matters. Most Democrats are likely to reject such a request and demand more detailed plans for military strategy and goals.
The requested amount would be a sizable boost to the Pentagon’s annual budget, which Congress approved at more than $800 billion for the current fiscal year.
That’s on top of some $150 billion that Congress gave the Defense Department in last year’s tax cuts bill, much of it for specific projects and overall upgrades to the Pentagon’s operations.
While some of the military’s biggest champions on Capitol Hill have welcomed new spending as a way to upgrade the U.S. defense capabilities in the face of emerging threats, others will certainly point to health care and other domestic needs that they view as more important priorities.
Trump administration widens Medicaid fraud crackdown to Florida, calling it a ‘hotspot’
The Trump administration on Tuesday widened its efforts to stamp out Medicaid fraud, at least in its fifth state this year, calling on Florida officials to share information on how they identify, prevent, and address bad actors in their state program.
Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz had previously sent similar requests to New York, Minnesota, Maine and California in what has been a growing, Trump administration-wide initiative to crack down on fraud, waste and abuse.
The letter to Florida Gov. Ron DeSantis and other state leaders is the first such request that Oz has announced to a Republican-led state as the administration seeks to convey that fraud won’t be accepted regardless of political leadership.
It comes a day after President Donald Trump signed an executive order to create an anti-fraud task force across federal benefit programs led by Vice President JD Vance. The president has ramped up such efforts as many American voters say they’re concerned about affordability ahead of November’s elections.
Announcing the new probe on social media, Oz wrote that Florida “has been a hotspot for health care fraud for years” and called on state leaders to “step up and work with us to stop it.”
He referenced past examples of high-dollar fraud schemes in Florida’s Medicare and Medicaid programs that resulted in criminal charges and said that “given the widespread scale and nature of these schemes,” CMS needed more details about the state’s program oversight.
Florida Attorney General James Uthmeier responded to Oz’s post on X and shared an example of a recent Medicaid fraud arrest in the state.
“The Medicaid system is overwhelmed with fraud and abuse, and we look forward to working with Dr. Oz on these issues,” he added.
Spokespeople for the other letter recipients, including DeSantis and Florida Agency for Health Care Administration officials, didn’t immediately respond to emailed inquiries. Oz gave the officials 30 days to respond to a list of detailed questions.
Last month, CMS halted Medicaid payments to Minnesota over fraud concerns, a move the state’s Democratic Gov. Tim Walz denounced as a political attack. Oz said the money would be delivered only after Minnesota implements “a comprehensive corrective action plan.”
CMS also has said it is blocking any new Medicare enrollments for suppliers of durable medical equipment, prosthetics, orthotics or other supplies used to treat chronic conditions or assist in injury recovery for six months to mitigate suspected improper billing.
U.S. national debt surges past $39 trillion just weeks into war in Iran
WASHINGTON (AP) — The national debt surpassed a record $39 trillion on Wednesday, a milestone that comes just weeks into the U.S.-Israeli war in Iran.
The unprecedented figure highlights competing administration priorities, from passing a massive tax law and boosting defense spending and immigration enforcement to chipping away at the debt itself — the latter of which Donald Trump promised to do as both a candidate and as president.
The Government Accountability Office outlines some of the impact of rising government debt on Americans — including higher borrowing costs for things like mortgages and cars, lower wages from businesses having less money available to invest, and more expensive goods and services. Advocates for a balanced budget also warn that the long-term trend of borrowing more and paying more in interest will force Americans to face tougher fiscal tradeoffs ahead.
Michael Peterson, chair and CEO of the nonprofit Peter G. Peterson Foundation, created to raise awareness of America’s long-term fiscal challenges, said in a statement that “we must recognize this alarming rate of growth and the significant financial burden we are putting on the next generation.”
The trajectory of the rising costs is also a concern. The federal debt has surged under both Republican and Democratic presidents, most recently fueled by wars, large-scale pandemic spending and tax cuts.
The U.S. national debt hit $38 trillion five months ago — and $37 trillion two months before that.
“At the current growth rate, we will hit a staggering $40 trillion in national debt before this fall’s elections,” Peterson said. “Borrowing trillion after trillion at this rapid pace with no plan in place is the definition of unsustainable.”
White House economic adviser Kevin Hassett estimated on Sunday that the war in Iran had cost the U.S. more than $12 billion so far. It is unclear when the war will end.
Kush Desai, a White House spokesman, pointed to a decline in the federal deficit during Trump’s first year back in office.
According to Treasury’s Fiscal Data website, total government spending in fiscal year 2025 was $7.01 trillion and total revenue was $5.23 trillion, resulting in a deficit of $1.78 trillion, which is a decrease of $41 billion from the previous fiscal year.
Desai said the decrease in the deficit is attributable to raising individual tax revenue and a “government right-sizing push that has reduced federal employment to its lowest level since 1966, and aggressive crackdown on federal welfare fraud. As these and other initiatives continue taking effect, America’s deficit and debt-to-GDP ratios will continue trending in the right direction.”
Bondi gives ousted interim U.S. attorney new title, allows him to keep job
MADISON, Wis. (AP) — U.S. Attorney General Pam Bondi is allowing an ousted interim federal prosecutor to continue overseeing cases in Wisconsin with a new title in what’s becoming a familiar move in federal judicial districts across the nation as Democrats in the U.S. Senate delay confirmation votes on President Donald Trump’s appointees.
Bondi appointed Brad Schimel in November to a 120-day term as interim U.S. attorney for the Eastern District of Wisconsin, headquartered in Milwaukee. His term was set to expire Tuesday, according to a news release on the district’s website. The district’s federal judges could have allowed him to remain in the interim post, but they announced March 10 that they decided not to extend him.
The U.S. Attorney’s office in Milwaukee announced Wednesday that Bondi has named Schimel first assistant U.S. attorney in Milwaukee and that he’ll continue overseeing operations under that title.
Interim, acting or first assistant U.S. attorneys are running most of the nation’s 94 federal judicial districts as Senate Democrats hold up confirmation votes on presidential appointees. According to a list on the U.S. Department of Justice’s website, only 30 districts are currently led by a presidentially nominated and Senate-confirmed U.S. attorney.
First assistants like Schimel are currently running U.S. attorney’s offices in a dozen states, including California, New Mexico, Kentucky, Nevada, New York, Virginia, Vermont and Washington state, according to the list.
Schimel, a Republican, holds a law degree from the University of Wisconsin Law School. He served as the Waukesha County district attorney before winning election as Wisconsin attorney general in 2014. He lost a bid for a second term to Democrat Josh Kaul in 2018. He landed on his feet after that defeat, though, with outgoing Republican Gov. Scott Walker appointing him as a judge in Waukesha County.
He ran for the state Supreme Court last spring with the court’s ideological balance at stake. But despite Trump’s endorsement and millions in spending from billionaire Elon Musk, Schimel lost the race to liberal Susan Crawford.
Florida
Newly discovered Whitey Bulger writings show former FBI agent was framed, lawyers allege
FORT LAUDERDALE, Fla. (AP) — Attorneys are drawing on statements from a handwritten manuscript by the late mobster James “Whitey” Bulger in an effort to overturn a former FBI agent’s murder conviction, saying the crime boss’s own words show that the agent was framed.
Lawyers for former FBI agent John Connolly filed a motion in Miami-Dade Circuit Court on Monday seeking to vacate his conviction, citing what they describe as newly discovered evidence that prosecutors failed to disclose for years.
The material includes FBI reports documenting Bulger’s statements and the unfinished handwritten manuscript the FBI seized during a search of Bulger’s apartment after his 2011 arrest.
In their filing, Connolly’s lawyers say Bulger, who led Boston’s Winter Hill Gang, asserted in the documents that Connolly didn’t leak information to him that was used in the 1982 killing of businessman John Callahan in Miami, contradicting the prosecution’s case against Connolly. Instead, Bulger identified another FBI agent, John Morris, as his mole, and described Connolly as a “sacrificial lamb,” according to the filing.
Connolly, now 85, was convicted in Florida of second-degree murder and racketeering.
In the manuscript, Bulger wrote that he was a “criminal almost all of my life,” and described using inside tips to stay ahead of the law.
“I never thought the day would come that I’d be writing a story about my criminal activity,” Bulger wrote.
The attorneys claim Bulger was writing the manuscript to help clear Connolly’s name.
They also say Bulger’s writings and FBI statements made after the mobster’s arrest weren’t previously disclosed to the defense.
The material came to light after a longtime prosecutor involved in the Connolly case resigned from the Miami-Dade state attorney’s office following reports of misconduct that included granting favors to witnesses and coordinating witness testimony.
In 2024, Connolly’s lawyers received a letter from Miami-Dade Chief Assistant State Attorney Jose Arrojo informing them that a sealed envelope labeled “confidential” contained the Bulger manuscript and his statements to the FBI.
In their filing, Connolly’s lawyers accuse prosecutors of a general pattern of misconduct, arguing that they withheld evidence favorable to the defense in violation of constitutional requirements. Courts have previously found that some evidence in the case was improperly withheld, though they ruled it was not material enough to overturn the conviction.
Connolly’s attorneys say the newly surfaced material goes further, creating reasonable doubt about his guilt.
Connolly, who had been serving a 40-year sentence, was granted compassionate release in 2021 after a judge cited his terminal illness and the risks of COVID-19.
Connolly was a special agent with the FBI in Boston in July 1982 when mob hitman John Martorano shot Callahan in the back of the head and left his body in the trunk of a car at Miami International Airport.
Connolly was indicted on a first-degree murder charge 21 years later. At the time, prosecutors claimed Bulger and Stephen Flemmi ordered Callahan’s killing after Connolly told them the FBI was investigating Callahan’s ties to Bulger and his gang for the 1981 killing of Roger Wheeler, who owned World Jai Alai.
But in the manuscript and post-arrest FBI statements, Connolly’s lawyers claim Bulger stated that Connolly was framed by Morris, who was Connolly’s FBI supervisor.
“I am sure everyone close to me thought all the information I had came from (Connolly), Bulger wrote. “I didn’t discourage that thought — sadly for Connolly, he took the heat for warning me to take off and other things that had come from (Morris).”
Bulger accused Morris of becoming a “star witness” against Connolly to save himself. Morris testified against Connolly as part of a cooperation agreement that granted him immunity from prosecution.
While leading his gang, Bulger, who inspired Jack Nicholson’s character in the 2006 Martin Scorsese movie “The Departed” and was portrayed by Johnny Depp in the 2015 gangster drama “Black Mass,” also served as an FBI informant against the Mafia. Bulger denied that claim.
Pentagon seeks $200 billion in additional funds for the Iran war, AP source says
WASHINGTON (AP) — The Pentagon is seeking $200 billion in additional funds for the Iran war, a sizable amount that is certain to be met with questions from Congress, which would need to approve any new money.
The department sent the request to the White House, according to a senior administration official, who spoke on condition of anonymity to discuss the private information. Asked about the figure at a press conference Thursday, Defense Secretary Pete Hegseth did not directly confirm the amount, saying it could change.
“It takes money to kill bad guys,” Hegseth said.
But he said “we’re going back to Congress and our folks there to ensure that we’re properly funded.”
It’s an extraordinarily high number and comes on top of extra funding the Defense Department already received last year in President Donald Trump’s big tax cuts bill. Such a request would need to be approved by Congress, and it is not at all clear such spending would have political support.
Congress has been bracing for a new spending request but it is not clear the White House has transmitted the request for consideration. The new funding request was first reported by The Washington Post.
Any new funding would need to be approved by Congress, which has not authorized the war, and is showing growing unease with the military operation’s scope and strategy.
Congress is controlled by the president’s Republican Party but many of the more conservative lawmakers are also fiscal hawks, with little political appetite for big spending, on military operations or other matters. Most Democrats are likely to reject such a request and demand more detailed plans for military strategy and goals.
The requested amount would be a sizable boost to the Pentagon’s annual budget, which Congress approved at more than $800 billion for the current fiscal year.
That’s on top of some $150 billion that Congress gave the Defense Department in last year’s tax cuts bill, much of it for specific projects and overall upgrades to the Pentagon’s operations.
While some of the military’s biggest champions on Capitol Hill have welcomed new spending as a way to upgrade the U.S. defense capabilities in the face of emerging threats, others will certainly point to health care and other domestic needs that they view as more important priorities.
Pentagon seeks $200 billion in additional funds for the Iran war, AP source says
WASHINGTON (AP) — The Pentagon is seeking $200 billion in additional funds for the Iran war, a sizable amount that is certain to be met with questions from Congress, which would need to approve any new money.
The department sent the request to the White House, according to a senior administration official, who spoke on condition of anonymity to discuss the private information. Asked about the figure at a press conference Thursday, Defense Secretary Pete Hegseth did not directly confirm the amount, saying it could change.
“It takes money to kill bad guys,” Hegseth said.
But he said “we’re going back to Congress and our folks there to ensure that we’re properly funded.”
It’s an extraordinarily high number and comes on top of extra funding the Defense Department already received last year in President Donald Trump’s big tax cuts bill. Such a request would need to be approved by Congress, and it is not at all clear such spending would have political support.
Congress has been bracing for a new spending request but it is not clear the White House has transmitted the request for consideration. The new funding request was first reported by The Washington Post.
Any new funding would need to be approved by Congress, which has not authorized the war, and is showing growing unease with the military operation’s scope and strategy.
Congress is controlled by the president’s Republican Party but many of the more conservative lawmakers are also fiscal hawks, with little political appetite for big spending, on military operations or other matters. Most Democrats are likely to reject such a request and demand more detailed plans for military strategy and goals.
The requested amount would be a sizable boost to the Pentagon’s annual budget, which Congress approved at more than $800 billion for the current fiscal year.
That’s on top of some $150 billion that Congress gave the Defense Department in last year’s tax cuts bill, much of it for specific projects and overall upgrades to the Pentagon’s operations.
While some of the military’s biggest champions on Capitol Hill have welcomed new spending as a way to upgrade the U.S. defense capabilities in the face of emerging threats, others will certainly point to health care and other domestic needs that they view as more important priorities.
Trump administration widens Medicaid fraud crackdown to Florida, calling it a ‘hotspot’
The Trump administration on Tuesday widened its efforts to stamp out Medicaid fraud, at least in its fifth state this year, calling on Florida officials to share information on how they identify, prevent, and address bad actors in their state program.
Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz had previously sent similar requests to New York, Minnesota, Maine and California in what has been a growing, Trump administration-wide initiative to crack down on fraud, waste and abuse.
The letter to Florida Gov. Ron DeSantis and other state leaders is the first such request that Oz has announced to a Republican-led state as the administration seeks to convey that fraud won’t be accepted regardless of political leadership.
It comes a day after President Donald Trump signed an executive order to create an anti-fraud task force across federal benefit programs led by Vice President JD Vance. The president has ramped up such efforts as many American voters say they’re concerned about affordability ahead of November’s elections.
Announcing the new probe on social media, Oz wrote that Florida “has been a hotspot for health care fraud for years” and called on state leaders to “step up and work with us to stop it.”
He referenced past examples of high-dollar fraud schemes in Florida’s Medicare and Medicaid programs that resulted in criminal charges and said that “given the widespread scale and nature of these schemes,” CMS needed more details about the state’s program oversight.
Florida Attorney General James Uthmeier responded to Oz’s post on X and shared an example of a recent Medicaid fraud arrest in the state.
“The Medicaid system is overwhelmed with fraud and abuse, and we look forward to working with Dr. Oz on these issues,” he added.
Spokespeople for the other letter recipients, including DeSantis and Florida Agency for Health Care Administration officials, didn’t immediately respond to emailed inquiries. Oz gave the officials 30 days to respond to a list of detailed questions.
Last month, CMS halted Medicaid payments to Minnesota over fraud concerns, a move the state’s Democratic Gov. Tim Walz denounced as a political attack. Oz said the money would be delivered only after Minnesota implements “a comprehensive corrective action plan.”
CMS also has said it is blocking any new Medicare enrollments for suppliers of durable medical equipment, prosthetics, orthotics or other supplies used to treat chronic conditions or assist in injury recovery for six months to mitigate suspected improper billing.
U.S. national debt surges past $39 trillion just weeks into war in Iran
WASHINGTON (AP) — The national debt surpassed a record $39 trillion on Wednesday, a milestone that comes just weeks into the U.S.-Israeli war in Iran.
The unprecedented figure highlights competing administration priorities, from passing a massive tax law and boosting defense spending and immigration enforcement to chipping away at the debt itself — the latter of which Donald Trump promised to do as both a candidate and as president.
The Government Accountability Office outlines some of the impact of rising government debt on Americans — including higher borrowing costs for things like mortgages and cars, lower wages from businesses having less money available to invest, and more expensive goods and services. Advocates for a balanced budget also warn that the long-term trend of borrowing more and paying more in interest will force Americans to face tougher fiscal tradeoffs ahead.
Michael Peterson, chair and CEO of the nonprofit Peter G. Peterson Foundation, created to raise awareness of America’s long-term fiscal challenges, said in a statement that “we must recognize this alarming rate of growth and the significant financial burden we are putting on the next generation.”
The trajectory of the rising costs is also a concern. The federal debt has surged under both Republican and Democratic presidents, most recently fueled by wars, large-scale pandemic spending and tax cuts.
The U.S. national debt hit $38 trillion five months ago — and $37 trillion two months before that.
“At the current growth rate, we will hit a staggering $40 trillion in national debt before this fall’s elections,” Peterson said. “Borrowing trillion after trillion at this rapid pace with no plan in place is the definition of unsustainable.”
White House economic adviser Kevin Hassett estimated on Sunday that the war in Iran had cost the U.S. more than $12 billion so far. It is unclear when the war will end.
Kush Desai, a White House spokesman, pointed to a decline in the federal deficit during Trump’s first year back in office.
According to Treasury’s Fiscal Data website, total government spending in fiscal year 2025 was $7.01 trillion and total revenue was $5.23 trillion, resulting in a deficit of $1.78 trillion, which is a decrease of $41 billion from the previous fiscal year.
Desai said the decrease in the deficit is attributable to raising individual tax revenue and a “government right-sizing push that has reduced federal employment to its lowest level since 1966, and aggressive crackdown on federal welfare fraud. As these and other initiatives continue taking effect, America’s deficit and debt-to-GDP ratios will continue trending in the right direction.”
