Taxpayers Await Further Cuts to Waste and Debt

Despite progress, more can be done to reduce deficit and national debt, says watchdog group

Published on Feb. 23, 2026

Got story updates? Submit your updates here. ›

While the state of the union has improved under the current administration, with lower inflation, gas prices, and more tax cuts, the national debt and deficit continue to grow at an unsustainable pace. Watchdog groups have identified hundreds of ways to reduce waste, fraud, and mismanagement in federal spending, but lawmakers have lacked the political will to implement them. Eliminating the ineffective Center for Medicare and Medicaid Innovation and cutting improper payments could save billions, helping to avoid the Congressional Budget Office's dire projections of skyrocketing debt.

Why it matters

As the national debt continues to rise at an alarming rate, taxpayers are looking to the government to take concrete steps to rein in spending and eliminate waste. Implementing long-standing recommendations from watchdog groups could help avoid the CBO's forecasts of disastrous growth in the national debt over the next decade.

The details

The Congressional Budget Office projects that between 2026 and 2036, gross federal debt will rise by 62%, from $39.4 trillion to $63.7 trillion. Net interest on the debt will average $1.5 trillion during that period, surpassing every other area of federal spending except Social Security and Medicare. Watchdog groups like Citizens Against Government Waste have identified hundreds of ways to cut spending, including reducing improper payments, which totaled $94.1 billion for Medicare and Medicaid in 2025. Eliminating the Center for Medicare and Medicaid Innovation, which has cost taxpayers $5.4 billion while failing to generate savings, is another potential target for savings.

  • In 2025, improper payments totaled $56.7 billion for Medicare and $37.4 billion for Medicaid.
  • On February 10, 2026, President Trump signed a law prohibiting deceased individuals from receiving federal payments.
  • In December 2025, the Center for Medicare and Medicaid Innovation released new pricing models that would tie U.S. drug prices to those in countries with socialized healthcare systems.

The players

Tom Schatz

The author of the original opinion piece, which was published in The Washington Times.

President Trump

The current president, who has promised to reduce the size and scope of the federal government.

Citizens Against Government Waste

A watchdog group that has been issuing recommendations to reduce government waste and mismanagement since 1993.

Centers for Medicare & Medicaid Services (CMS)

The federal agency responsible for overseeing Medicare, Medicaid, and the Center for Medicare and Medicaid Innovation.

Congressional Budget Office (CBO)

The nonpartisan agency that provides budget and economic analysis to Congress.

Got photos? Submit your photos here. ›

What they’re saying

“Taxpayers have much to look forward to as the administration and Congress continue to work on reducing the size, scope, and power of the federal government.”

— Tom Schatz, Author (The Washington Times)

“In his 2020 State of the Union address, Mr. Trump promised his administration 'will never let socialism destroy American health care.' In his 2026 address, CAGW urges Mr. Trump to remain true to that commitment and call for the withdrawal of CMMI's misguided proposals.”

— Tom Schatz, Author (The Washington Times)

What’s next

President Trump is expected to address the issue of government waste and inefficiency in his 2026 State of the Union address, where he may call for the withdrawal of the Center for Medicare and Medicaid Innovation's controversial pricing models.

The takeaway

While the state of the union has improved in some areas, the growing national debt remains a major concern for taxpayers. Implementing long-standing recommendations to reduce waste, fraud, and mismanagement in federal spending could help avoid the CBO's dire projections and put the country on a more sustainable fiscal path.