05.24.21

CBO to Budget Ranking Member Graham: Democrats’ Spending Spree Shatters Previous Deficit, Debt Outlook

WASHINGTON – Recently Senate Budget Committee Ranking Member Lindsey Graham (R-South Carolina) wrote to the Congressional Budget Office (CBO) asking for the budgetary impact of enacting the American Rescue Plan Act and the types of additional spending increases proposed by President Biden, as compared to CBO’s February 2021 projections. 

CBO found that over the next decade, deficits would rise by $7.6 trillion to a total of $22.1 trillion, and debt held by the public will surge to $42.9 trillion or 130.2 percent of gross domestic product (GDP). 

Click HERE to read Ranking Member Graham’s letter. Click HERE to read CBO’s response.

Graham asked CBO to examine the effects of three scenarios. Here is what they found:

  1. The American Rescue Plan Act:

·         By 2031, deficits and debt would be nearly $2.1 trillion higher than in CBO’s initial projection.

·         The national debt would be 113 percent of GDP by 2031.

  1. The American Rescue Plan Act and maintaining the Biden Administration’s total FY2022 request for nondefense discretionary spending:

·         By 2031, deficits and debt would be $2.7 trillion higher than CBO’s previous forecasts.

·         Deficits and debt would be $665 billion higher than the first scenario.

·         The national debt would equal 115 percent of GDP in 2031. 

  1. The American Rescue Plan Act, maintaining the Biden Administration’s total FY2022 request for nondefense discretionary spending, and proposals based on the Biden Administration’s infrastructure and family spending plans: 

·         Deficits over the 2021-2031 period and debt in 2031 would be $7.6 trillion higher than CBO’s previous forecasts.

·         Deficits and debt would be $4.9 trillion higher than the second scenario.

·         The national debt would equal 130 percent of GDP in 2031.

####