An obvious political reality of the "Great Communicator" and how he convinced many people through talk that he would deliver a balanced budget. 4. The federal debt was $994 billion when Reagan took office in 1981, and grew to $2.9 trillion when his second term ended in 1989. 36. In his two terms as President, Reagan cut the budgets of the Department of Housing and Urban Development (by 40%), the Department of Commerce (by 32%), the Department of Agriculture (by 24%), the Department of Education (by 19%), and the Department of Transportation (by 18%). He NEVER cut the budgets for the Departments of Defense, Health and Human Services, Justice, or State. 4.Veronique de Rugy, "President Reagan, Champion Budget-Cutter," American Institute for Public Policy Research website, June 9, 2004 36.Office of Management and Budget, "Historical Tables: Budget of the United States Government, Fiscal Year 2009," www.whitehouse.gov, 2009