USAFacts by Steve Ballmer explains and gives us the data!
The One Big Beautiful Bill Act was a large piece of legislation that made several budgetary changes. Some of its provisions are permanent; other provisions won’t go into effect until later next year. Meanwhile, the Trump administration has released its proposed budget for discretionary spending in fiscal year 2026, which begins on October 1. Here’s a look at the proposed changes.
- The proposed 2026 budget would keep base discretionary spending at the same level as 2025, but shifts billions out of some departments and into others. It would move $113.3 billion to the DOD, meaning the department would have 59.6% of all base discretionary spending.
- The Department of Homeland Security budget would have the largest percentage increase (64.9%) to support immigration enforcement and other administration policies. Funding for FEMA, TSA, and cybersecurity, among other programs, would be reduced.
- The State Department and international aid programs would be cut by 83.7%, including reductions in international disaster assistance and global health efforts.
- The administration also proposes a 43.6% decrease in program funding for the Department of Housing and Urban Development, reducing it from $77.0 billion to $43.5 billion. This includes a $26.7 billion cut in federal rental assistance programs.
- The Education Department’s discretionary budget would drop 15.3%, from $78.7 billion to $66.7 billion. (You can read USAFacts Founder Steve Ballmer’s open letter to Education Secretary Linda McMahon on LinkedIn.)
Americans aren’t saving like they used to
Americans saved an average of 4.6% of their disposable income in 2024. The US personal saving rate is a measure of people’s financial health and is one indicator of consumer behavior and economic growth. Rising personal savings can mean people are spending less, which can lead to slower economic growth. Consumer spending accounts for 70% of the US economy.
Congress is considering legislation to create a Universal Savings Account, an investment vehicle exempt from taxes and withdrawal penalties. The idea is to encourage more Americans to save because they aren’t saving as much as they used to.
- The personal saving rate in the 1960s and 1970s averaged 11.7%, peaking at 17.3% in May 1975. It’s gradually declined since then, reaching an all-time low of 1.4% in July 2005.
- Personal savings peaked at 32% in April 2020. There are a few reasons for this, including households proactively saving during economic uncertainty. Business closures reduced opportunities for spending, contributing to higher savings.
- Inflation is another reason for lower savings: food and fuel costs may rise while wages don’t increase at the same rate. This goes for housing, too. Over one-third of all households were cost-burdened in 2023, spending more than 30% of their income on mortgage or rent.
- Americans may also be saving in different ways. The share of American assets held in stocks rose from 15.2% to 20% from 2019 to 2022.
Data behind the news
The Trump administration has resumed sending some weapons to Ukraine. Remember last week when we said more data on government assistance to foreign countries was coming soon? It’s here! Dive into aid sent to Ukraine and 175 other countries.
As of July 8, the US has counted 1,288 cases of measles. This is the highest yearly case count since the nation declared measles eliminated in 2000. We have a new page tracking these cases across states.
Thousands of Philadelphia city workers had been on strike for over a week, resulting in residential trash piling up. They reached a deal with the city last Wednesday.
President Trump approved a major disaster declaration for Texas on July 6, making FEMA funding available to people affected by the devastating floods.
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One last fact
In 2024, the federal government spent $100.3 billion on the Supplemental Nutrition Assistance Program (SNAP) — about 1.5% of total federal spending. The average monthly benefit in 2024 was $188 per person, down from the 2021 peak of $253.