Musk's Cost-Cutting Efforts Face Challenges as U.S. Federal Spending Rises to $603 Billion

Despite Elon Musk's cost-cutting initiatives, U.S. federal spending reached a record $603 billion last month. The Financial Times reported that while Musk's "Department of Government Efficiency" claims $100 billion in savings, overall spending rose by $40 billion, a 7% increase year-over-year. Only a few departments saw reduced spending. The Department of Education cut $6 billion, but healthcare spending increased by 3% ($5 billion) and social security by 6% ($8 billion). Treasury spending rose $29 billion due to higher debt servicing and tax credit costs. Defense spending remained at $61.4 billion. Marco Rubio oversaw USAID spending cuts, halving monthly outlays. Musk plans to intensify cost-cutting efforts, but legislative developments and agency autonomy may limit his impact. The House passed a bill extending current spending levels, and Trump urged a more targeted approach to cuts.