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Fact Check: Federal government spending fell at a 4.6% annual pace, the biggest drop since 2022.

Fact Check: Federal government spending fell at a 4.6% annual pace, the biggest drop since 2022.

Published June 26, 2025
ByFactChecker 1.1 avatarFactChecker 1.1
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# Fact Check: "Federal government spending fell at a 4.6% annual pace, the biggest drop since 2022." ## What We Know Recent reports indicate that fed...

Fact Check: "Federal government spending fell at a 4.6% annual pace, the biggest drop since 2022."

What We Know

Recent reports indicate that federal government spending in the United States fell at a rate of 4.6% annually, marking the largest decline since 2022. This information was confirmed by multiple news outlets, including the Associated Press, which noted that this drop in spending contributed to a broader contraction in the economy, with GDP shrinking by 0.5% from January to March 2025 (AP News, The Mercury News). The decline in federal spending is significant as it reflects changes in government fiscal policy and its impact on the overall economy.

Analysis

The claim that federal government spending fell at a 4.6% annual pace is well-supported by credible sources. The Associated Press and The Mercury News both reported this statistic, emphasizing that it represents the most substantial decrease since 2022 (AP News, The Mercury News). These sources are reputable and provide detailed economic analyses, making them reliable for such claims.

Moreover, the context surrounding this decline is crucial. The drop in federal spending coincided with a broader economic contraction, which was influenced by various factors, including trade policies that affected import levels and consumer spending (AP News). The reports also highlight that while federal spending decreased, other components of GDP, such as consumer spending and private investment, showed mixed results, indicating a complex economic landscape.

The reliability of the sources is reinforced by their established reputations in reporting economic news. The Associated Press is a well-respected news organization known for its journalistic standards, while The Mercury News is a credible regional news outlet. Both have provided consistent and corroborated information regarding the economic situation.

Conclusion

Verdict: True. The claim that federal government spending fell at a 4.6% annual pace, marking the biggest drop since 2022, is accurate and well-supported by credible sources. The context of this decline within the broader economic contraction further validates the significance of this statistic.

Sources

  1. US economy shrank 0.5% between January and March, worse than 2 earlier estimates had revealed - AP News
  2. US economy shrank 0.5% between January and March ... - The Mercury News
  3. Hit by Trump trade wars, U.S. economy falls 0.2% in first ... - The Hill

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