A deal that would raise the US debt ceiling and limit government spending would reduce the federal deficit by $1.5 trillion in the next 10 years, according to a report by the non-partisan Congressional Budget Office (CBO).
“Reductions in projected discretionary outlays would amount to $1.3 trillion over the 2024–2033 period,” the CBO wrote in a letter sent Tuesday to House of Representatives Speaker Kevin McCarthy.
“Mandatory spending would, on net, decrease by $10 billion, and revenues would, on net, decrease by $2 billion over the 2023–2033 period,” it said. “As a consequence, interest on the public debt would decline by $188 billion.”
The estimates come as lawmakers are preparing to vote on a bill in the House later Wednesday.
President Joe Biden urged Congress on Sunday to pass a bipartisan deal he reached with McCarthy to raise the nation’s debt ceiling, which aims to avoid the US defaulting on its debt obligations.
If Congress fails to reach a deal, the government will be unable to pay its bills, which could happen in less than one week.
Treasury Secretary Janet Yellen warned Friday in a letter to McCarthy that her agency will not have enough resources “to satisfy the government’s obligations if Congress has not raised or suspended the debt limit by June 5.”
Be First to Comment