Jodey Arrington - Chairman of the House Budget Committee | Official U.S. House headshot
Jodey Arrington - Chairman of the House Budget Committee | Official U.S. House headshot
The Congressional Budget Office (CBO) released its updated budget projections for fiscal years 2024-2034 today. This update follows the February baseline and aims to help Congress understand the fiscal and economic challenges facing the country.
House Budget Committee Chairman Jodey Arrington (R-TX) commented on CBO’s revised baseline: “CBO’s June revised baseline could be the final budget outlook of fiscal year 2024, and its findings are more dire than previously expected - meaning, today’s baseline could be our final wakeup call of the 118th Congress to take stock of the fiscal state of our nation after four years of fiscal failures implemented by the Biden Administration.”
According to CBO's report, deficit spending for FY24 is projected to reach $1.9 trillion, which is $400 billion higher than estimated four months earlier. This increase marks the third highest yearly deficit rise in American history, equivalent to 6.7 percent of GDP. A significant driver behind this surge is attributed to executive actions by the Biden Administration, which have reportedly cost over $2 trillion.
Arrington noted that interest payments on national debt have risen by $540 billion or 153 percent since President Biden took office. He stated, "While revenues collected by the Treasury continue to exceed expectations, unsustainable federal and executive spending counteracts the benefits of incoming revenues by undermining the prowess of the U.S. economy."
Arrington also pointed out that CBO's current estimates do not account for costs associated with illegal immigration at state and local levels. He emphasized that these expenses include localized crime, law enforcement, housing, education, health services for immigrants and their dependents.
The updated projections reveal that gross federal debt will total $56.8 trillion (137.3 percent of GDP) by 2034, up from $34.7 trillion (122.7 percent of GDP). The ten-year deficit is expected to total $22.1 trillion, increasing by 49 percent over this period.
Spending over ten years is projected at $84.9 trillion, growing from $6.8 trillion in 2024 to $10.3 trillion in 2034. Mandatory spending is expected to increase from 74 percent of the budget in 2024 to 78 percent in 2034.
Interest spending alone will amount to $12.9 trillion over ten years, increasing from $892 billion in 2024 to $1.7 trillion in 2034.
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