Mandatory spending will make it hard for DOGE to cut the government’s budget
The leaders of the forthcoming Department of Government Efficiency (DOGE) want to move fast to reduce the federal government’s size and spending. Vivek Ramaswamy, who will co-head the department with Elon Musk, said they will likely start with executive actions, then ask Congress to make budget cuts.
One of the big targets, according to Ramaswamy, will be unelected bureaucrats who write rules and regulations based on the laws of Congress.
“It’s the unelected bureaucrats in the administrative state that was created through executive action, it’s going to be fixed through executive action,” Ramaswamy said on “Sunday Morning Futures” on Fox News Channel.
Ramaswamy said he wants to target government contractors who he says are overcharging for their services. He pointed to the Pentagon for failing seven audits in a row. Over half its budget is spent on military contractors.
Ramaswamy says they want to finish all their work by July 4, 2026.
“We expect certain agencies to be deleted outright,” Ramaswamy said. “We expect mass reductions in force in areas of the federal government that are bloated, we expect massive cuts among federal contractors and others who are over billing the federal government.”
Cutting the budget will not be easy because so much money the government spends is mandatory spending. Federal spending falls into two categories: mandatory and discretionary.
Discretionary spending can be changed every year, it’s totally up to Congress and the President.
Mandatory spending is money the government is legally obligated to pay out because it is written into law. That includes Social Security, Medicare, Medicaid, unemployment, food assistance and other entitlement programs.
Mandatory spending makes up more than half the government’s expenses. For example in 2023, the federal government’s total outlay was $6.1 trillion, $3.8 trillion was mandatory, $1.7 trillion was discretionary, the rest was spent on interest payments. Of the discretionary spending, $805 billion was on defense, which lawmakers typically increase every year. That leaves $917 billion on non-defense spending, which is only about 15% of the government’s budget.
Elon Musk said he wants to cut at least $2 trillion in government spending, that would require cuts to both discretionary and mandatory programs.
Trump team eyes changes to 1974 law to enable Musk’s budget overhaul plans
President-elect Donald Trump’s announcement of a commission led by Elon Musk and Vivek Ramaswamy to overhaul federal spending is raising constitutional concerns about executive authority. The commission, unofficially dubbed the “Department of Government Efficiency,” aims to cut up to $2 trillion from the federal budget, but legal experts warn that bypassing Congress could lead to a constitutional clash.
Trump, Musk and Ramaswamy envision the commission as a watchdog on government spending. Musk has pledged to make recommendations and publicize federal expenses considered wasteful.
They aim to reduce funding for outdated programs, streamline agencies and apply business principles to federal budgets. However, the plan’s legality is in question due to the 1974 Impoundment Control Act, which prevents the executive branch from withholding funds allocated by Congress.
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The Trump administration has floated the idea of challenging or amending the Impoundment Control Act, potentially giving the White House more budgetary control. Trump’s allies, buoyed by the conservative-leaning Supreme Court, are optimistic that the court might support these reforms.
Supporters argue that increasing executive power over spending is essential to addressing the national debt, which has reached $36 trillion. Russell Vought, Trump’s former budget director and vocal advocate for such reforms, claims the 1974 law limits the president’s authority to reduce waste and has labeled it unconstitutional.
Meanwhile, critics argue that circumventing Congress could endanger the balance of power. Legal scholars caution that allowing any White House to unilaterally cancel spending could set a dangerous precedent. Others, like former House Speaker Newt Gingrich, advocate working with Congress rather than sidestepping it.
As Trump prepares to take office, a potential showdown over the scope of executive power could be one of the first major legal battles of his administration.
Congress needs to fund gov and military, pass farm bill and raise debt ceiling
Congress has a list of vital legislation it must approve before the new Congress is sworn in on Jan. 3. Failure to act will result in a government shutdown and a potential default on the nation’s debt.
There are two key deadlines
The first is Dec. 20 when government funding expires.
Congress has two options: approve a bill for the rest of fiscal year 2025 or approve another temporary measure, which would mean the permanent solution is finalized when Republicans are in total control of Washington.
The next deadline is Jan. 1 when the nation hits the debt ceiling, which is the maximum amount of money it’s allowed to borrow without further approval.
The deadline was set in 2023 by the Fiscal Responsibility Act, a compromise between then-Speaker Kevin McCarthy, R-Calif., and President Biden.
The Treasury Department can use some fancy accounting to push the deadline back a couple of months, but eventually Congress will have to increase the amount of money the government is allowed to borrow because the country spends more than it brings in.
Congress also has to approve the farm bill, which only comes up about once every five years. The farm bill that was approved in 2018 is expiring.
This legislation has a tremendous impact on the nation’s food supply. It covers crop insurance, training for young farmers on sustainable practices and provides assistance for low-income families so they can buy healthier foods.
Japan in political uncertainty after long-ruling party loses election
A major political shakeup has taken over Japan. The ruling party failed to win a majority in parliament for the first time in more than a decade.
Prime Minister Shigeru Ishiba said he won’t step down, despite the Liberal Democratic Party (LDP) losing the general election Sunday, Oct. 27. Ishiba called a snap election soon after being sworn in, hoping to cement his leadership of the LDP.
The ruling party lost 68 seats in Sunday’s election, dropping the LDP from 259 seats to 191 seats in the 465 seat Japanese House of Representatives. The LDP’s coalition partner, Komeito, also lost 8 seats, dropping from 32 to 24 seats.
Big winners in the election included the Constitutional Democratic Party, led by Yoshihiko Noda, which jumped from 96 seats to 148 seats, and the Democratic Party For the People, led by Yuichiro Tamaki, which gained 17 seats, rising from just 11 seats to 28 after the election.
A number of issues led to the election result, with many voters in Japan upset over rising inflation, and a major political funding scandal at the center of the Liberal Democratic Party.
An investigation in 2023 revealed lawmakers had been pocketing millions of dollars in proceeds from fundraisers, resulting in approval ratings of lower than 20%.
This is the first time the Liberal Democratic Party has lost its majority since 2009. The party ruled almost continuously since 1955. Japan’s parliament has 30 days to convene and choose a prime minister.
The chosen prime minister’s party will form the government and can do that without a majority of seats, making up that loss by creating a larger coalition with other political parties.
North Carolina needs $53B to recover from Helene, ‘redneck air force’ steps in
New numbers revealed the cost of destruction to North Carolina after Hurricane Helene. The state needs at least a record $53 billion to recover.
That number includes damages and potential investments to prevent similar destruction in future storms.
North Carolina Gov. Roy Cooper, D, said the state’s previous record for storm damage was $17 billion from Hurricane Florence in 2018.
Helene caused 1,400 landslides in western North Carolina and damaged or destroyed around 126,000 homes. More than 1,000 bridges and at least 6,000 miles of roads were also damaged.
Nearly 40 of the state’s 100 counties are within the federally declared disaster area.
Critics say the government didn’t act fast enough following the storm, which led to private citizens forming their own homegrown rescue and supply operation known as the “redneck air force.”
The group, created by Savage Freedoms, includes current and former soldiers, special operations pilots and helicopter tour guides.
The group is using its own aircraft to fly doctors, medicine, generators, fuel and food to isolated residents, relying on donations to fund the project.
FEMA said it has shipped over 9 million meals and more than 11 million liters of water.
Lawmakers plan to meet for a one-day session on Thursday, Oct. 24, to advance additional hurricane recovery legislation for North Carolina. They already approved a $273 million package.
Senate Republicans want to stop US funding for UN if Israel’s status is downgraded
A group of 27 Senate Republicans plan to introduce a bill that would cut off U.S. funding for the United Nations (UN) if Israel’s status within the international body is downgraded. The Senators said the legislation is necessary due to reports that the Palestinian Authority will try to downgrade Israel’s status.
The group, led by members of the Foreign Relations Committee, said they will introduce the bill when Congress reconvenes after the election. The bill would cut off U.S. funding to UN agencies that expel, downgrade, suspend or otherwise restrict the participation of the State of Israel.
“Any attempt to alter Israel’s status at the UN is clearly anti-Semitic,” Foreign Relations ranking member Sen. James Risch, R-Idaho, said in a statement. “That said, if the UN member states allow the Palestinian Authority and the Palestine Liberation Organization to downgrade Israel’s status at the UN, the U.S. must stop supporting the UN system, as it would clearly be beyond repair. I am disgusted that this outrageous idea has even been discussed.”
There is a bipartisan companion bill in the House introduced by Reps. Mike Lawler, R-N.Y., and Jared Moskowitz, D-Fla.
Currently, the Palestinian Authority is considered a non-member observer state at the UN.
In May, the UN General Assembly approved a resolution that urged the Security Council to favorably consider granting the Palestinian Authority full membership. The resolution also granted the PA the right to introduce and co-sponsor proposals and amendments. Those new privileges would allow their representatives to introduce a resolution to downgrade Israel’s status as a full member state.
Palestinian representatives cannot vote at the UN. The Palestinian Authority is working to gain full membership from the Security Council. The United States is the single largest financial contributor to the UN.
The General Assembly performs an assessment every three years on how much each country should pay based on their financial capacity. For the general UN budget, the U.S. provides 22%, followed by China at 15.25% and Japan at 8%. The U.S. also provides billions more to UN Specialized Agencies and UN Peacekeeping. In total, the US provided the UN with approximately $18 billion dollars in 2022.
IRS unveils new income tax brackets and deductions for 2025
The IRS has announced key tax changes for 2025, including adjustments to income tax brackets, standard deductions, and capital gains rates due to inflation. These updates will affect how much Americans pay in taxes when filing in 2026.
For income taxes, the top bracket remains at 37%, applying to single filers earning over $626,350 or married couples with income over $751,600.
The lowest rate, 10%, applies to incomes under $11,925 for individuals and under $23,850 for couples. Meanwhile, standard deductions will increase slightly, with single filers able to claim $15,000 and married couples deducting $30,000. Heads of households will see their deduction rise to $22,500.
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Capital gains tax rates will also be adjusted. Single filers with income up to $48,350 and married couples earning up to $96,700 will continue to qualify for the 0% rate on long-term capital gains.
Additionally, the Earned Income Tax Credit will increase to a maximum of $8,046 for those with three or more children. These changes are designed to provide relief for taxpayers as they face rising inflation.
Harris, Trump field questions during town halls as Election Day nears
With less than three weeks until the presidential election, the candidates are blitzing battleground states and the airwaves with town halls. And in a possible blow to small businesses hoping to rebuild after Hurricanes Helene and Milton, one federal agency is running out of money. These stories and more highlight your Unbiased Updates for Wednesday, Oct. 16, 2024.
Harris, Trump field questions during town halls as Election Day nears
With less than three weeks to go until Election Day, the candidates fielded questions on Tuesday, Oct. 15, in two different town hall settings.
Democratic nominee Vice President Kamala Harris took part in a town hall in Detroit hosted by radio personality Charlamagne tha God as she looks to reach Black voters. During the town hall, the vice president said she believes slavery reparations should be studied.
Harris said while she is running for “president for everyone” she is “clear-eyed about the history and the disparities that exist for specific communities.”
The vice president also urged Black Americans not to sit out on Election Day.
Vice President Harris: Ask Donald Trump what his plan is for Black America. I'll tell you what it is. Project 2025 wants to implement stop-and-frisk. It wants to make it more difficult for workers to receive overtime pay. He wants to terminate the Constitution, which includes… pic.twitter.com/ZAQNgRkRyq
“The solutions that we all want are not going to happen in totality because of one election but here’s the thing: the things that we want and are prepared to fight for won’t happen if we’re not active and if we don’t participate,” she said. “We cannot allow circumstances to take us out the game because then basically what we’re saying is all those people who are obstructionist, who are standing in the way of change, they’re winning because they are convincing people that it can’t be done so take yourself out, don’t participate. Look at that circle, look at that vicious circle, then so let’s not fall for it.”
Meanwhile, Republican nominee former President Donald Trump participated in a Fox News town hall in Georgia moderated by host Harris Faulkner.
The town hall had an all-female audience, with the women posing questions to Trump on issues such as the economy, immigration, and abortion. According to reports of the event, which will air later Wednesday, Oct. 16 on Fox News, Trump said some states are “too tough” when it comes to restrictions on abortion and those laws “are going to be redone.”
“The African American community and the Hispanic community are being devastated with the jobs, the numbers are down 6, 7, 8, 9%. They are going to work, and they’re saying, ‘I’m sorry, we’re not going to take you any more.’ People that have worked there and worked there well for years are now being told that they no longer have a job because they have illegal immigrants coming in and taking their job,” Trump said. “Any African American or Hispanic, and you know how well I’m doing there, that votes for Kamala, you got to have your head examined, because they are really screwing you.”
Early voting begins in Georgia with record turnout
Early voting has begun in the battleground state of Georgia and it’s already seeing a record turnout. Voting for the Nov. 5 presidential election started Tuesday and by the late afternoon, at least 252,000 voters had already cast ballots at early voting sites.
That’s nearly double the 136,000 who voted on the first day of early voting in the 2020 election, according to a top Georgia election official.
Also Tuesday, a judge blocked a new rule requiring Georgia Election Day ballots to be counted by hand after the close of voting. That ruling came just a day after the same judge ruled county election officials must certify election results by the deadline set in law.
Small Business Administration runs out of disaster relief funding
The Small Business administration has run out of funding for its disaster assistance loans right after the one-two punch of Hurricanes Helene and Milton. That means much-needed financial assistance will be delayed for people applying for help right now.
After a disaster, the SBA provides loans to businesses and people who need them. The organization had warned it expected to run out of money by the end of the month.
Congress can approve more funding, but lawmakers are not set to reconvene until Nov. 12. The SBA administrator said in the meantime, people that need them should keep applying for the loans.
HURRICANE #MILTON SURVIVORS: Business owners and residents in declared disaster areas can now apply for SBA assistance.
Israel strikes Beirut despite U.S. opposition; vows to avoid nuclear sites in Iran
At least one Israeli air strike rocked a Beirut, Lebanon suburb early Wednesday morning, killing at least 15 people according to the Associated Press. The strike came just hours after a State Department spokesperson said the U.S. told its key ally it opposed the bombing campaign there in recent weeks.
On Tuesday, the United Nations’ Human Rights Office called for an investigation into an Israeli air strike that happened on Monday which killed at least 21 people in northern Lebanon, saying it posed “real concerns” because it may have violated international laws governing war.
This comes as a Biden administration official said Israel has assured the U.S. it will not hit nuclear or oil sites when it retaliates against Iran for its missile barrage earlier this month.
However, that does not mean Israel will keep its word. In the past, the country’s track record of sticking to what it tells the U.S. has been mixed.
Just last month, U.S. officials were told by their Israeli counterparts Prime Minister Benjamin Netanyahu would welcome a U.S.- and French-led temporary cease-fire initiative in Lebanon, only for Israel to launch a massive airstrike that killed a Hezbollah leader two days later.
Johnson & Johnson ordered to pay $15M in baby powder cancer case
A jury has ordered Johnson & Johnson to pay $15 million to a Connecticut man who says he developed a rare form of cancer after using the company’s baby powder for decades. The man says he contracted mesothelioma from inhaling the talc powder.
The jury also said Johnson & Johnson should pay additional punitive damages, which will be determined later by the judge overseeing the case.
After the ruling, Johnson & Johnson’s vice president of litigation said the company will be appealing the decision, saying “erroneous” rulings by the judge kept the jury from hearing critical facts about the case.
Tom Brady approved to become minority owner of Raiders
Tom Brady has been called many names: the GOAT, Super Bowl champion, and NFL commentator, to name a few. Now, he can add team owner to that list.
On Tuesday, NFL team owners voted to approve Brady’s purchase of a minority stake in the Las Vegas Raiders. The former NFL quarterback said in a statement he is eager to contribute to the Raiders organization in any way.
Because of his new title, Brady faces some restrictions in his other role as a Fox broadcaster, including being barred from weekly production meetings with the players and coaches in the games he will cover.
FEMA has $11 billion in Disaster Relief Fund as Milton makes landfall
The Federal Emergency Management Agency (FEMA) has approximately $11 billion in the Disaster Relief Fund as it responds to Hurricane Milton, the second major hurricane to hit Florida’s Gulf Coast in three weeks. FEMA Administrator Deanne Criswell is working to assure the public the agency will have enough money for the immediate response.
“The biggest tool we have is what we call immediate needs funding,” Criswell told reporters Wednesday, Oct. 9. “We keep a reserve within our Disaster Relief Fund to make sure that I can always cover these life saving activities like we’re seeing right now.”
Congress gave Criswell the authority to tap into $20 billion from the fiscal year 2025 budget, of which the agency has already spent about $9 billion. In August, FEMA put approximately $8 billion in spending on previous disasters on hold. It has been using the newly approved funds to respond to Hurricane Helene and reimburse communities whose projects were paused.
“I have over a hundred open disasters across the United States for recovery, and I need to continue to be able to reimburse these communities for their recovery projects as well as sustain the response that we’re seeing right now,” Criswell said.
Criswell put in a $9 billion supplemental funding request to Congress earlier this year which she says still stands. After they have a better understanding of how much these recent disasters will cost, FEMA will ask for additional money on top of that.
Criswell said she’s never seen more open disasters than right now. She attributes that to a busy tornado season, catastrophic flooding and wildfires in the West.
“This increase in the number of severe weather events we’re seeing as well as the complexity of many of these events because of the amount of damage that they’re doing, is increasing the number of open disasters,” Criswell said. “The recovery is more complex and it takes longer to help reimburse these communities as they rebuild from the weather events.”
FEMA is still spending billions of dollars a year on disasters as far back as Hurricane Katrina. Spending on previous disasters accounts for billions of dollars a year.
A new survey revealed the impact the migrant surge in the United States has had on schools. Reuters polled 75 school districts across 23 states. A third of districts said the increase in migrant children had a significant impact leading to budget issues and language barriers.
Additionally, 42 districts said they had to hire more instructors to teach students how to speak English. Another 15 districts said they had difficulties communicating with parents without proper help from interpreters.
When it came to budgets, 17 districts said they requested additional state funds to help immigrant students.
According to immigration court records, more than half a million school-age migrant children have arrived in the U.S. since 2022.
Denver has seen a major increase in migrants enrolled at its schools. During the 2022 to 2023 school year, Denver Public Schools had 1,532 migrant students. In the 2023 to 2024 school year, there were 3,935 migrant students enrolled in classes.
Survey respondents were asked whether they feel they are trained to meet the needs of migrant students. A majority said they were either well trained or partially trained.
The survey results also revealed 11 respondents said the newcomers had enriched the school community and brought new perspectives that could help other students learn.
All children in the U.S., regardless of their immigration status, have a right to free public education. But, the federal government does not cover the educational services entirely.
