Milwaukee City Wire

U.S. Senator Ron Johnson (R-Wis.) has released a report titled "FY 2025 Budget Reconciliation: Facts, Figures, and Analysis," in which he argues that the scale of the federal deficit is not being fully recognized by Congress, the Administration, or the public. “The first step in solving any problem is admitting you have one. The second step is defining it clearly,” said Sen. Johnson.

According to Johnson’s report, prior to the COVID-19 pandemic, annual federal deficits averaged $660 billion over seven years. He states that emergency spending during the pandemic caused a significant increase in expenditures—rising by $2.1 trillion in fiscal year 2020 alone and resulting in a one-year deficit exceeding $3.1 trillion.

Johnson criticizes ongoing high levels of government spending after the initial crisis had passed, noting that deficits have averaged $1.9 trillion over the following four years as unemployment rates returned to normal and inflation reached levels not seen in forty years.

Citing projections from several sources, Johnson highlights differing estimates for future deficits:

- The Congressional Budget Office's January 2025 baseline projects a cumulative ten-year deficit of $21.1 trillion between FY2025 and FY2034.

- The CBO’s analysis of what Johnson refers to as the One Big Beautiful Bill (OBBB) projects a ten-year deficit of $24.1 trillion.

- A White House memo from June 7, 2025 projects a ten-year deficit of $18.6 trillion but assumes increased tariff revenue and reductions in discretionary spending.

Johnson’s report analyzes these scenarios with different economic growth rates and spending assumptions, concluding that returning to pre-pandemic spending levels is necessary for any hope of balancing the budget.

As stated by Republican leaders: “We don't have a revenue problem; we have a spending problem.”

“Republicans must ask themselves whether they're willing to address this spending problem. I hope the answer is yes — and I will continue doing everything I can to ensure it is,” said Sen. Johnson.

Senator Johnson has previously won elections against Mandela Barnes in 2022 with just over half of the vote, as well as defeating Russ Feingold in both 2016 and 2010 general elections.

The full text of Senator Johnson’s report is available online.