America’s fiscal crisis is worsening. Everyone should take note.

There are two fundamental fiscal truths: America has a debt problem, and dealing with the debt will not be easy.

So far, our leaders are not coming to terms with the facts.

The numbers speak for themselves. In the fiscal year that just ended on Sept. 30 — the last date for which the federal government was funded — the deficit was largely unchanged from its fiscal 2024 level: $1.8 trillion. In other words, despite the Trump administration’s focus on cost cutting in the federal government and all the additional revenue coming from tariffs, the deficit is still as large as it was a year ago.

All told, federal spending from January 2025 to September 2025 is up about 2% from the same period in 2024. You might wonder how that is possible, given that the government (when it was funded) has operated under the same discretionary spending levels as last year, as well as high-profile Trump administration activities such as the Department of Government Efficiency effort, downsizing of the federal workforce, the abolition of the U.S. Agency for International Development and the forthcoming closure of the Department of Education. Two words: mandatory spending.

The largest mandatory spending programs are Social Security and Medicare. Others include things such as Medicaid and the Affordable Care Act subsidies, safety-net programs such as SNAP and Supplemental Security Income, and various other programs such as student loans and some veterans’ benefits. These programs don’t require regular review by Congress, and they grow automatically for a variety of reasons, such as higher enrollment or higher costs.

A closer look at the numbers is revealing. Since January, the federal government has spent $5.2 trillion — about $100 billion more than it spent from January through September of 2024. Spending on Social Security — the largest federal program — grew by $96 billion; Medicare spending grew by $58 billion; and spending on other federal health programs, including Medicaid, grew by a combined $46 billion. Discretionary spending, which Congress decides on annually through the appropriations process, grew as well, largely due to increases in defense ($19 billion) and the discretionary portion of veterans’ benefits ($27 billion). And do not forget about interest on the national debt, which grew by $63 billion.

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Offsetting about two-thirds of the total increase in spending was a combination of one-time savings for student loan programs enacted by the One Big Beautiful Bill reconciliation law and decreases in spending on international affairs ($22 billion), among other relatively small changes.

To get borrowing under control, we’ll need to cut spending, increase revenue or some combination of the two (ideally along with economic growth). The reconciliation law put in place significant spending cuts, largely achieved through smart savings such as cracking down on abusive financing practices that states use to exploit Medicaid’s formula for matching funds. But those cuts were more than drowned out by massive tax cuts — only a small portion of which were financed — as well as increases in spending for defense and border security. That mismatch will increase interest costs as well. As a result, that law will cut total spending through 2034 only by about $400 billion — compared to $86 trillion in spending during the same period.

For all the recent talk of policymakers’ interest in curtailing spending, the glaring issue when it comes to actual action has been the two behemoths of the budget: Social Security and Medicare. Without touching either of these programs, there really isn’t much space to make significant improvements in our country’s fiscal situation. Worse, both programs have trust funds that are on a path toward insolvency. Social Security’s retirement trust fund and Medicare’s Hospital Insurance trust fund will run out of reserves in just seven years. At that point, the programs will be slashed — Social Security benefits by 24% and Medicare by 12% — as they are unable to cover what has been promised. Not making spending changes cements these across-the-board cuts.

Americans should be concerned with the dismal state of our fiscal situation. It will take tough choices and trade-offs to slow the growth in spending or otherwise raise revenue to the point that our national borrowing is sustainable. Ideally, our leaders would do that before it is too late.