Although it is essential in a healthy democracy to work across party lines, achieving bipartisan consensus is not necessary for enacting a budget this year, as Republicans control the levers of power. However, over the last generation, substantial deficit reduction has generally involved bipartisan coalitions in Congress. In our final brief on deficit reduction, we discuss the principal bipartisan effort currently underway, that of the Problem Solvers Caucus.

Because Republicans wield nearly every point of power in the current U.S. Congress, the initial moves on deficit reduction in 2025 will likely come from them. As of late February, the Senate has passed a proposal, and the House is moving towards considering its version. However, given certain divisions within the Republican Party and its narrow majorities in the House and Senate, substantial deficit reduction will likely involve a combination of Republican and Democratic support.

President Trump recently signed an Executive Order to create a United States Sovereign Wealth Fund (SWF). What is a SWF, and why do countries and American states form them?