The upcoming September 30th deadline looms for Congress as it scrambles to fund the government for the 2026 fiscal year, with both Republicans and Democrats feeling the pressure.
Continuing resolutions have become almost a routine measure. There was, perhaps somewhat surprisingly, an attempt from the White House to stretch funding into January. Yet, the House opted for a continuous resolution lasting just seven weeks after the Senate also voted on it. But really, these efforts seem to be more about postponement than actual solutions.
One could look at the rising deficit as a significant concern, largely stemming from a big, sprawling bill that may not be serving the country well. The total government debt, sitting at around $37 trillion, is truly alarming. The only voices consistently echoing concern seem to be the budget hawks, who reflect on the potential ticking time bomb this creates.
If there’s hope for our nation to emerge from its current fiscal mess, there also needs to be a focus on wise government spending. Of course, not every dollar spent will deliver immediate benefits, but investments in areas like healthcare and national security are crucial for the nation’s wellbeing. Ideally, taxpayer dollars should yield returns that benefit the broader population.
History has plenty of examples illustrating the benefits of such investments.
Take, for instance, the interstate system initiated by President Eisenhower in 1956. This was a groundbreaking project that transformed travel across the nation, generating innumerable economic benefits. It didn’t just create jobs but also enabled industries—like hospitality and retail—to flourish around it. That’s a legacy that continues to pay dividends today.
Similarly, the National Airspace System managed by the Federal Aviation Administration has been pivotal. A safe and dependable air travel system adds substantial economic value for many. Failing to upgrade our air traffic control could lead to a collapse of trust that affects everyone.
Higher education represents another significant area of return on investment. An educated populace is a catalyst for wealth creation. The digital economy, for example, has thrived because of educational initiatives. Interestingly, international education contributes about 20% to the trade surplus, which highlights the importance of universities in generating economic benefits. Yet, attacks on higher education threaten its potential, which seems counterproductive given the clear gains that come from investing in education.
Interestingly, criticisms from the president often seem to stem from personal ideological views rather than an objective assessment of returns. It feels like there’s a danger in using education as a bargaining chip in broader political discussions, prioritizing personal agendas over meaningful investments.
Then there’s the ongoing cost of servicing our national debt. It’s not just about the numbers; fluctuating tariffs add layers of uncertainty for the economy. While the Fed’s aim seems to focus on keeping interest rates stable, there’s a hesitancy to drop them as the president might prefer. However, even a slight decrease in rates can lead to significant savings in debt payments.
In an environment plagued by reckless government spending and an ongoing budget deficit, it seems like Congress often prioritizes re-election strategies over smart fiscal practices. Just spending more without a plan is really not how to achieve sustainability.
This time around, lawmakers are evidently trying hard to dodge a potential government shutdown. Historically speaking, compromises often materialize just in the nick of time. However, there’s a feeling that this situation may differ significantly. The last major shutdown occurred during the first Trump administration, and the outcome of this one remains to be seen.
When measures were initiated to cut government waste, it was clear that the focus needed to shift toward rational funding. Having experience in federal government, it’s evident that continuing resolutions are likely to lead to more financial waste than they might resolve given the large number of federal employees.
In a perfect world, the straightforward principle of return on investment would guide government budgeting and prioritization. Yet, in today’s Washington, dysfunction seems rampant. Avoiding tough decisions, skirting reasonable compromises, and forcing taxpayers to bear the burden only perpetuates the cycle.
Dr. Sheldon H. Jacobson is a professor of computer science at Grainger University of Engineering at the University of Illinois, Urbana-Champaign. He employs his expertise in risk-based analytics to tackle public policy issues.
