New York, November 28, 2025
The U.S. federal government on Thursday unveiled its Budget 2025 proposal, outlining $7.3 trillion in spending against $5.5 trillion in revenue, resulting in a $1.8 trillion deficit. The budget aims to address economic inequality, health care, education, and fiscal sustainability through targeted taxation and increased investments.
Budget Overview
The 2025 budget projects total federal expenditures of $7.3 trillion while estimating revenues at $5.5 trillion, leaving a significant deficit of $1.8 trillion. This fiscal plan reflects ongoing challenges in balancing urgent public needs with the national debt and economic pressures.
Major Policy Initiatives
Key elements of the proposal include election-year commitments framed to support social and economic welfare. These encompass the expansion of Medicare drug price negotiations to reduce prescription costs, restoration of an enhanced child tax credit to combat child poverty, a $10,000 mortgage relief credit spread over two years, and full funding for the Women, Infants, and Children (WIC) nutrition program. These programs emphasize direct aid to vulnerable populations and aim to improve quality of life amid economic uncertainty.
Taxation Changes
The budget capitalizes on increased corporate and wealth taxation as a primary revenue mechanism. It proposes raising the corporate tax rate from 21% to 28%, increasing the corporate minimum tax from 15% to 21%, and eliminating corporate tax deductions on employee compensation exceeding $1 million. Furthermore, it plans to quadruple the tax on stock buybacks to 4% and impose a 25% minimum tax on billionaires. These measures intend to address income disparities and generate funds for expanded social programs.
Entitlement Protections
The proposal asserts a firm stance on entitlement programs by maintaining existing Social Security and Medicare benefits without cuts. It introduces an increased Medicare tax on incomes exceeding $400,000 and strengthens efforts to close tax avoidance loopholes that allow some businesses to circumvent Medicare taxes. Additionally, the budget leverages enhanced taxation of wealthy households to extend the financial solvency of Social Security programs, aiming to safeguard these foundational safety nets.
Education and Treasury Funding
Education receives a marked increase in funding, with investments spanning early childhood education through higher education. Notable allocations include $8 billion in mandatory funds aimed at critical student services, increased support for mental health and multilingual programs, expansion of Pell Grants, and initiatives to reduce higher education costs — including providing free textbooks. The Treasury’s budget allocates $14.4 billion in base discretionaries, focusing on bolstering economic growth, national security, taxpayer services, and expanding equitable capital access, particularly to underserved communities through enhanced community development financial institutions and targeted programs.
Context and Ambition
The Budget 2025 comes against a backdrop of a persistently high national deficit and a politically charged environment. Its ambitious mix of social spending and tax increases signals a strategic bid to tackle systemic inequalities while maintaining fiscal responsibilities. The government’s commitment to protecting entitlements and investing in public welfare programs reflects a policy priority on sustaining economic stability and supporting broad societal needs despite fiscal constraints.
Such comprehensive proposals will likely shape the U.S. economic and social landscape in coming years, influencing policymakers, business leaders, and citizens alike as national discussions over growth, equity, and responsibility continue.