Kerby Anderson
Yesterday I talked about some of the political challenges that President Trump, his administration, and Congress face this year. Today, I want to talk about the economic challenges.
As I write this, the U.S. debt clock shows that the country is currently $36.5 trillion in debt. As you probably know, the national debt has increased under Republican and Democratic presidents and increased no matter whether Democrats or Republicans controlled Congress.
But it is also fair to say that the country’s economic circumstances are much worse four years after Trump left office. Federal spending under President Biden and Congress increased dramatically.
Congress passed a $900 billion so-called “Covid-Relief” bill just after Christmas 2020, as Trump was leaving office. At the time, you could make a case that this was more than enough. But by March 2021, President Biden and Congress passed his $1.9 trillion “American Rescue Plan.”
Did the country need a stimulus of that size? Former Treasury Secretary Lawrence Summers explained that the spending amount was much more than was needed to address any of the economic issues and warned that such spending would lead to inflation.
Even that much spending was not enough for Biden and Congress. Later that year, they passed a $1 trillion infrastructure bill. He then proposed a $2.2 trillion “Build Back Better Act.” But by the end of 2021, inflation had reached almost seven percent. Some in Congress were nervous about the price tag so they downsized the bill and President Biden decided to rename it the “Inflation Reduction Act.”
This is what the Trump administration has inherited and explains why the Department of Government Efficiency is looking for ways to cut spending.

Kerby Anderson
During the 2024 presidential campaign, I did several commentaries on the challenges the next president would face in 2025. Donald Trump is now the president, and his administration and Congress face some significant political challenges.
Karl Rove recently listed them as “The Five Trials of Trump 47.” One of those challenges is the need to approve a funding bill for the balance of the 2025 fiscal year or face a shutdown on March 14. The added challenges are getting both the House and Senate to approve budget resolutions, then going to conference committee, and finally taking up the difficult issues associated with budget reconciliation.
In the background is a desire by the president and members of Congress to extend the Trump 2017 tax cuts. This requires some coordination since Senate Republicans prefer two reconciliation measures, while the House Republicans favor one reconciliation.
Another challenge is the need for Congress to raise the debt ceiling. It hit its $36.1 trillion limit the day Donald Trump was sworn into office. We are a month past that limit. So far, the Treasury Department has been using what are called “extraordinary measures” to keep the government working.
Speaker Mike Johnson faces the challenge of trying to move legislation through the House with the narrowest of margins. Representative Matt Gaetz already resigned. Representative Mike Waltz left to become national security advisor, and Representative Elise Stefanik is leaving to become UN ambassador.
These are just a few of the political challenges Trump, his administration, and Congress will face over the next few months. But there are more challenges on the horizon. Tomorrow, I will talk about many of the economic challenges ahead.