The Congressional Budget Office published a Thursday report estimating that the $1 trillion plan would add $256 Billion to the nation’s deficit over the next ten years. That means that nearly half of the proposed spending package could end up adding to the nation’s growing debt load despite calls from the Congressional Budget Office to increase revenues, reallocate funds, or reduce spending.
The gap between government revenue and spending has increased to over $2.2 trillion in 2021, despite inflation fears riling markets recently. It is smaller than last year’s $2.7 billion but much more significant than historic deficits of less than $1 trillion. A higher deficit usually means the government is taking more debt. This could limit the government’s ability to increase spending to fight economic downturns and pandemics.
Majority leader Chuck Schumer (D.N.Y.) stated Thursday that the Senate would vote on the finalization of the infrastructure bill by Saturday. The House will then vote on the package.
$35 trillion. C.B.O. projects that the nation will have $35 trillion in debt by the end of the year. This is before adjusting for fiscal stimulus.
