Official government announcements and budget documents

House Republicans Agree to Cut $2.5 Trillion in Mandatory Spending, Including Social Security, Medicare, Medicaid, Amid Debt Ceiling Hike

Dec 20, 2024, 06:31 PM

House Republicans have agreed to a deal that includes a promise to cut $2.5 trillion in net mandatory spending, as reported by Punchbowl News. This agreement is part of a broader spending deal and involves raising the debt ceiling. Mandatory spending, which constitutes 72% of the federal budget and is projected to grow annually, includes programs such as Social Security, Medicare, Medicaid, and veterans' benefits. In 2023, Social Security alone accounted for $1.35 trillion out of the total $3.8 trillion in mandatory spending. The proposed cuts would necessitate significant reductions in these programs, with some suggesting that without touching Social Security, programs like Medicare and Medicaid might need to be abolished to meet the $2.5 trillion target. There is skepticism about the feasibility of passing such substantial cuts, with some analysts questioning the political groundwork necessary for such reforms.