Bessent said in August he was working with Vought on fiscal consolidation
President Trump said last week that Office of Management and Budget Director Russell Vought is preparing a “tremendous” announcement, with timing before or after next month’s midterm elections unclear, according to a WSJ Politics newsletter written by Damian Paletta, the Journal’s Washington coverage chief.
“Vought is going to be making a tremendous announcement soon,” Trump said, per the newsletter. Trump added that Vought is “working on something that’s going to be so good for our country.” He attached a note of caution, however, saying the result would be enormous “if he pulls this off.”
Paletta framed the tease as either an “October Surprise” or, if delayed, a “November Surprise” timed to next month’s midterm elections. The newsletter said the White House has been trying to find ways to cut spending without Congress, and that any such announcement could be best kept under wraps until after the midterms. The bond market has wanted the White House to get serious about the budget deficit, Paletta wrote.
Treasury Secretary Scott Bessent said in August that he was working with Vought on a major fiscal consolidation package, according to the newsletter.
Any meaningful announcement would need to register against the scale of federal finances the newsletter put forward: a $7.4 trillion budget, a $2 trillion annual deficit, and $40 trillion in debt. Earlier this year, an initial push to cut federal spending through the Department of Government Efficiency ran into trouble — the newsletter described the rollout as a bit of a mess, with many of the attempted reductions blocked.
Trump’s tease comes as he has separately promised $5,000 checks to every American adult if Republicans retain control of Congress in the midterms, a move he has estimated could cost $1 trillion. The newsletter said the only other plausible option was a large deregulation announcement, but called it less likely, since such a move would typically be promoted publicly before an election rather than held back.
In other items, the newsletter reported that the two-day Warsaw Security Forum on the continuing Russia-Ukraine war begins Monday. Trump is scheduled to speak at a campaign event in Youngstown, Ohio, at 7 p.m. ET Monday. Sen. Amy Klobuchar, heavily favored to be Minnesota’s next governor, is trying to help her state turn a page; as some Democrats try to move their party in a more progressive — even socialist — direction, Klobuchar is pushing moderation. She has called for no new taxes, expressed a willingness to work with Republicans and businesses, and has distanced herself from Democratic Gov. Tim Walz.
The newsletter also reported that Trump posted on Truth Social on Sunday, “Effective immediately, there is an ENERGY CEASEFIRE in the War between Russia and Ukraine. Both parties have agreed,” despite Moscow’s rejection of such a deal so far and no sign that there was an agreement in place. The statement came amid widespread pushback on Capitol Hill to Trump’s decision to allow Russia to export oil to the U.S. and world markets and his harsh remarks toward Ukraine President Volodymyr Zelensky.
The newsletter added that the left flank of the Democratic Party raises and spends only a fraction of what many Republicans and the Democratic establishment do on elections, but that supporters are working to expand their funding as the far left gains momentum. Even the Democratic Socialists of America, which is funded exclusively by membership dues and relies largely on volunteers, has been experimenting with raising more money.
The newsletter said Paletta will be away from the WSJ Politics newsletter until Oct. 19, with election editor Aaron Zitner taking over in the interim, three weeks before the midterms.