Trump’s Economy and Budget

Jacob Francy, 26

Economy

After a couple of months of President Trump's second term, the U.S. economy produced a bit of growth and struggles across various areas.

Gross Domestic Product (GDP)

• Q4 2024 (President Biden): GDP grew at an annual rate of 2.3%, slightly below the anticipated 2.4%

• Q1 2025 (President Trump): Projections have been mainly an increase in GDP, with expectations of a 2.5% growth rate

  
  

Dow Jones (DJIA):

• January: The DJIA saw a growth of 4.4%. 

• February: Declined 1%

• March: Down 1.6% this month so far

• Total: The DJIA has slightly decreased by 0.2%.

Consumer Spending and Personal Income

• Personal Income: Increased by 0.9%, which is equal to $221.9 billion

• Consumer Spending: Decreased by 0.2% or $30.7 billion

Inflation

• Consumer Price Index (CPI): Rose by 0.4% in January, with a year-over-year increase to 3.3%, showing inflation is remaining on a consistent path.

  
  

Budget

Continuing Resolution (CR) Bill and Federal Program Funding

To stop a government shutdown, Congress passed the Full-Year Continuing Appropriations and Extensions Act of 2025 (H.R. 1968), which extended funding through September 30, 2025. Key points of the bill include:

• Defense Spending: Increased by $6 billion compared to fiscal year 2024 levels.

• Non-Defense Spending: Reduced by $13 billion from the previous fiscal year, affecting multiple areas in America, like the IRS and federal education programs

• Immigration Funding: Increased, specifically for ICE

• Executive Power: Grants the executive branch (Trump) more flexibility in spending federal money without Congressional approval

These funding shifts have people worried about their potential impact on public services and the economy in general.

As the administration advances its policy agenda, these economic and legislative decisions will play pivotal roles in shaping the nation's economic trajectory for years to come.