Dealing with Debt 5-27-25

The US has lost its last perfect credit rating, as influential ratings firm Moody's expressed concern over the government's ability to pay back its debt. In lowering the US rating from 'AAA' to 'Aa1', Moody's noted that successive US administrations had failed to reverse ballooning deficits and interest costs.

https://www.google.com/search?q=us+debt+downgrade 

In May 2025, the US national debt was $36.21 trillion. This includes $28.90 trillion in debt held by the public and $7.31 trillion in intragovernmental debt. The federal budget deficit for fiscal year 2025 is projected to be $1.9 trillion, according to the Congressional Budget Office. This deficit represents 6.2% of the Gross Domestic Product (GDP). 

https://www.google.com/search?q=us+national+debt+2025

The US government's interest payments on the national debt are projected to exceed $1 trillion in 2025 and continue rising throughout the next decade, reaching $1.8 trillion by 2035. This increase is primarily due to higher interest rates and a larger national debt. These interest costs will likely exceed defense spending and even Medicare spending. 

https://www.google.com/search?q=interest+payments+on+us+national+debt

The US Federal Government is in the process of cleaning up the Federal Budget that includes removing fraud, waste and abuse, reviewing and right-sizing headcount, upgrading computer systems to allow automation and giving it databases access to each other.

The cost of upgrading US federal computer systems is a complex issue with various facets. Here's a breakdown of the costs and related factors:

1. Overall Federal IT Spending:

The US federal government spends a significant amount on IT each year, with estimates exceeding $90 billion.

A large portion of this spending is allocated to operating and maintaining existing systems, including legacy systems.

In fiscal year 2025, the Biden administration requested $75.1 billion for IT spending across civilian agencies, a slight increase from the $74.4 billion requested in 2024.

The Department of Energy's IT budget saw a notable 37% increase, reaching $5.5 billion in FY2025, while the Department of Homeland Security's IT budget increased by 23% to around $11 billion.

Conversely, the Office of Personnel Management's IT budget decreased significantly, by 64% compared to FY2024. 

2. IT Modernization Initiatives:

The government recognizes the need to modernize its aging IT infrastructure.

The Technology Modernization Fund (TMF) is a key mechanism for funding modernization projects.

The Biden administration requested $75 million for the TMF in 2025, a reduction from the $200 million requested in 2024.

In addition to individual agency IT budgets, the administration is also requesting funds for the Federal Citizen Services Fund and OMB's IT Oversight and Reform fund. 

3. Cybersecurity Costs:

Cybersecurity is a major concern, and the federal government is increasing its cybersecurity investments.

The estimated annual civilian cybersecurity spending for CFO Act agencies was $12.325 million in FY2025.

The non-CFO Act Agencies received $674.3 million.

The Department of the Treasury's cybersecurity budget includes funding for zero trust architecture implementation and targeted artificial intelligence investments.

The Cybersecurity Enhancement Account also received a budget of $150 million for FY2025. 

4. Challenges and Considerations:

Many federal IT systems are outdated and rely on legacy technologies.

Modernization projects are complex and often face delays and cost overruns.

Balancing the need for modernization with cybersecurity concerns is a critical challenge.

There is a need to ensure that modernization efforts are efficient and cost-effective. 

5. AI and Emerging Technologies:

The government is exploring the use of AI to improve efficiency and effectiveness.

The 2025 budget request includes $300 million in mandatory funding for AI.

Agencies are using AI tools to help with maintaining and upgrading old systems. 

In conclusion: The cost of upgrading US federal computer systems is substantial and involves a complex interplay of factors. While the government recognizes the need for modernization and is investing in it, there are also challenges to overcome, such as aging infrastructure, cybersecurity concerns, and ensuring cost-effectiveness. The adoption of AI and other emerging technologies is also playing a role in shaping the future of federal IT modernization. 

A Look at the Federal Government's Aging Computer Systems

Aug 6, 2019 — Out with the old. The U.S. government plans to spend over $90 billion this fiscal year on information technology and most of that will be used to operate and ma...

U.S. Government Accountability Office (GAO) (.gov)

White House wants $75M for Technology Modernization Fund ...

Mar 11, 2024 — White House wants $75M for Technology Modernization Fund in fiscal 2025 — down from $200M in 2024 request. ... In total, the Biden administration requested $75....

FedScoop

For 2025 budget request, federal IT prioritizing AI, CX

Mar 12, 2024 — For 2024, the Senate is recommending $13.7 million and the House is allocating $8 million. Source: President's 2025 budget request.

https://www.google.com/search?q=cost+of+upgrading+us+federal+computer+systems+2025

Upgrading systems will cost money and will take time to implement. The first priority is to reduce tax rates to increase revenue and lower costs. DOGE has identified $160 billion in cost savings and will continue to identify unnecessary spending to reach their $1 trillion goal.

Tariff revenue can be used to add to Federal Revenue. Deporting Illegals will reduce costs and provide jobs for US citizens. Increasing Oil production will reduce costs. Reshoring manufacturing will add jobs. Lowering Federal Spending will allow for Private Sector GDP growth. New Trade Deals will increase US Production. Increasing oil production will reduce energy costs and reduce the US Trade Deficit. The goal is to increase family income and reduce family living costs by 2026.

The U.S. debt ceiling for 2026 is projected to be $39.8 trillion, reflecting the expected increase in debt subject to the limit as outlined in the House Budget Committee plan. The debt limit was reinstated at $36.1 trillion on January 2, 2025.

https://www.google.com/search?q=what+will+the+us+debt+ceiling+be+2026

In March 2025, the U.S. had 7.2 million job openings. 

https://www.google.com/search?q=how+many+us+job+openings

Comments

The cost of living in the US needs to be reduced. The costs in the US that need to be reduced includes Healthcare, Education, Housing and Automobiles.

Norb Leahy, Dunwoody GA Tea Party Leader