Facing immense pressure to reduce federal spending by $1 trillion, the DOGE organization has implemented sweeping cuts across numerous federal agencies, including the CDC, CMS, and departments of Education, Commerce, Defense, Energy, and others. These cuts have occurred despite a rise in critical aviation incidents, impacting agencies like the FAA. Many DOGE employees lack Washington experience, raising concerns about the cuts’ impact. Despite this, conservatives appear unconcerned about the organization’s identity and actions.
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President Trump signed an executive order expanding Elon Musk’s “Doge” program, mandating a centralized system for tracking and justifying federal spending, subject to public transparency, and monitored by Musk’s team. Exemptions exist for national security and related agencies. This initiative is part of a broader White House effort to drastically reduce the federal workforce, with planned large-scale reductions across multiple agencies, including significant cuts at the EPA and potential job losses at other departments. Despite some initial setbacks, including a disputed interruption of Ebola prevention funding, the order also includes measures such as a government real estate offloading plan and a freeze on non-essential government credit card use.
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The House released a budget resolution proposing $4.5 trillion in tax cuts, $2 trillion in mandatory spending cuts, and a $4 trillion debt ceiling increase, aiming to enact President Trump’s agenda. This action follows delays in the House due to internal disagreements, prompting the Senate to concurrently develop its own proposal. Speaker Johnson emphasized the House’s commitment to the President’s complete agenda, while Senate Republicans, led by Senator Graham, advocate for a two-part approach to expedite the process, prioritizing immediate action on border security, defense, and energy. Despite differing approaches, House Speaker Johnson and Senate Majority Leader Thune have reportedly coordinated their efforts.
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A White House memo has instituted a temporary freeze on all federal grants and loans, excluding Social Security and Medicare benefits, effective Tuesday at 5 p.m. This action, justified as a review of agency programs to align spending with presidential priorities, potentially impacts trillions in government spending and numerous public programs. The pause has prompted strong criticism from Democrats and nonprofits, who warn of devastating consequences for vital services and research. Exceptions may be granted on a case-by-case basis, and agencies must submit program details by February 10th.
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The House Freedom Caucus proposed a $4 trillion debt ceiling increase, contingent on $4 trillion in spending cuts over 10 years, to fund border security and defense increases. This plan, aiming for a two-year borrowing extension, seeks to secure 218 votes, potentially bypassing Democratic support. The proposal, which includes a two-bill, GOP-only reconciliation strategy, represents a significant political gamble for Republicans, given their historically limited success in raising the debt ceiling without bipartisan cooperation. The plan also contrasts with the House GOP leadership’s preferred approach and has drawn criticism for prioritizing tax cuts for the wealthy.
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House Republicans proposed a draft agreement including $2.5 trillion in mandatory spending cuts to raise the debt ceiling by $1.5 trillion. This plan, revealed in a closed-door meeting, targets programs like Social Security, Medicare, and Medicaid, despite legal limitations on directly cutting Social Security through the proposed reconciliation process. Critics argue these cuts are intended to fund tax cuts for the wealthy, with the only way to meet the proposed spending reductions being drastic cuts to major social programs. The plan underscores concerns about prioritizing tax cuts for corporations and billionaires over vital social safety nets.
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The Senate passed a continuing resolution (CR) to fund the government through March 14th by a vote of 85-11, averting a government shutdown. The bill, also passed by the House 366-34, includes $100 billion in disaster aid and a one-year farm bill. This legislation omits a debt limit extension initially demanded by President-elect Trump, a demand that ultimately led to several failed attempts at compromise. Republicans, in response, agreed to substantial spending cuts and a potential debt limit increase via reconciliation next year.
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Elon Musk and Vivek Ramaswamy, tasked with curbing federal spending, propose eliminating programs lacking explicit spending authorizations, a claim refuted by federal fiscal experts. This misunderstanding stems from conflating authorization (establishing program parameters) with appropriation (allocating funds), which Congress always legally authorizes. Experts argue that lapsing authorizations don’t signify wasteful spending; instead, they often grant agencies flexibility. Ultimately, DOGE’s recommendations are non-binding, leaving final budget decisions to Congress.
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John Q. Hosedrinker