Fact Check: Is Trump’s claim about cutting federal budget deficit by 27% in one year true?

WASHINGTON, DC: President Donald Trump on Tuesday, January 20, conducted a press conference in the Oval Office following the completion of the first year of his second term as the POTUS.

During the presser, Trump talked about the achievements of his administration during 2025 and claimed that he cut the federal budget deficit by 27% in one year. But is there any truth to his statement? Let us find out below.

Claim: Trump says he cut federal budget deficit by 27% in one year

During the press conference on Tuesday, Donald Trump spent the first 15 minutes trying to influence voters’ views on his administration’s immigration policies and the enforcement efforts of Immigration and Customs Enforcement (ICE).

The POTUS then went on to waffle through a lengthy list of what he said his administration had achieved over the past 12 months. He talked about creating 'super-high' economic growth. He also claimed he brought the gas prices down and slashed the trade deficit by 77%.

He also mentioned that there was 'tremendous' national security and 'no inflation' because of tariffs. He also claimed that the crime in Washington, DC, was 'almost done to nothing'.

However, during his speech, he made another statement, claiming that he cut the federal budget deficit by 27% during the first year of his second term. However, things don't seem to add up in this case.

Fact Check: Trump's statement on federal deficit budget is misleading

Donald Trump's claim that he cut the federal budget deficit by 27% in one year is false, as there are no credible sources to show a 27% cut in the annual deficit in any single year under him, including his first run as the POTUS.

In FY 2025, the federal budget deficit totaled $1.8 trillion — a decrease of $41 billion (or 2%) from the shortfall recorded in the previous year, as per data by the Congressional Budget Office.

Moreover, the CBO reported that the federal deficit in 2025 was equal to 5.9% of the nation’s gross domestic product (GDP), a decrease from 6.3% of GDP in 2024. 

A 27% reduction from FY 2024's level would mean a drop of approximately $490 billion, which would have resulted in a deficit of about $1.33 trillion. However, nothing like this really happened.

No credible sources from the US Treasury, CBO, or nonpartisan analyses support a 27% cut in 2025.

The President has highlighted positive revenue effects from tariffs and some spending restraint, but these have not shown a 27% annual deficit cut in one year during Trump's second run.