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<h1>U.S. Budget Deficit Hits $1.3T, Driven by Social Security, Medicare, Defense Spending amid Efficiency Efforts</h1> The US budget deficit reached $1.3 trillion in the first half of fiscal year 2025, the second-highest six-month level on record. Increased spending stems from Social Security, Medicare, Medicaid, and defense costs. A government efficiency initiative proposes workforce reductions and agency eliminations. House Republicans approved a budget framework with tax cuts and potential federal program reductions. Experts warn about the unsustainable pace of debt accumulation and potential fiscal challenges.