The deal, which prevented the US from defaulting on its obligations and unleashing economic upheaval, holds non-defense discretionary spending relatively flat for the coming fiscal year after agreed-upon appropriations adjustments and allows an increase of only 1% the following fiscal year. It temporarily expands work requirements in the food stamps program and rescinds more than $21 billion in funding for the Internal Revenue Service. All told, it would reduce budget deficits by about $1.
Those drivers include spending on mandatory programs like Social Security and Medicare and the lack of sufficient tax revenues. Social Security accounted for about 19% of federal spending in fiscal 2022, while Medicare took up 12%, according to US Treasury Department data.