US Treasury Secretary Outlines Cost-Cutting Measures Amid Debt Ceiling Pressures

US Treasury Secretary Scott Bessent delivered an urgent briefing on the state of global financial health, testifying before the House Appropriations subcommittee on Tuesday. He detailed the Trump administration’s aggressive cost-cutting campaign, emphasizing the looming pressure of the debt ceiling.

The Treasury Department has already slashed $2 billion from the IRS information technology budget without service disruptions. Further savings are targeted by transitioning the IRS from paper-based to automated systems. "Last year, the IRS spent $450 million on paper processing, employing nearly 6,500 full-time staff," Bessent noted. Treasury aims to reduce this expense to under $20 million by the end of President Trump’s second term through policy changes and automation.

Additional savings are expected from canceling unspecified programs, though specifics were not disclosed. The focus remains on fiscal efficiency as macroeconomic uncertainties persist.