The Congressional Budget Office (CBO) released an analysis Thursday saying the $1 trillion bipartisan infrastructure package would add $256 billion to the federal deficit over the next decade, a tough pill to swallow for GOP senators who have pushed for it. the full cost of the legislation.
The budget agency estimates the bill would increase discretionary spending by $415 billion over 10 years, while increasing revenues by $50 billion and decreasing direct spending by $110 billion.
🎬📺 Free Movies and Free TV Shows! 🎭🎬
“Overall, the legislation would add $256 billion to the projected deficits over that period,” CBO reported in its summary.
The bipartisan group of senators who negotiated the bill with the White House say it would spend $550 billion in new money above its current budget base. That means just over half of the new spending — $294 billion — would be offset by pay-for-sale, per CBO’s rigorous standards for scoring legislation.
Many Republicans have been saying for weeks that they want to see an official analysis showing that the $1 trillion infrastructure bill is being paid “credibly”.
“We need to get a score, so we need to see if the proposal is credibly paid for,” said the Senate minority leader. Mitch McConnell
Addison (Mitch) Mitchell McConnellOn The Money: Trump Asks Court To Block Release Of Tax Returns To Congress | Private sector adds 330K jobs in July, well below expectations Senate panel advances first three spending bills McConnell Formulates GOP Requirements for a Government Financing Deal LAKE (R-Ky.) said in late June, when he said he was undecided on whether or not to support the legislation.
McConnell was one of 17 Republicans who voted last week to move forward with the bill, although that doesn’t necessarily mean he will support the final passage.
The CBO score supports conservative Republicans who criticized some of the bill’s fees as budget gimmicks.
“It’s easy to get so caught up in it and get so wrapped up in the things you see on the bill that are good…sometimes when you get so caught up in it, it’s easy to lose sight of the fact that the amounts paid are fake,” Sen said. Mike LeeMichael (Mike) Shumway LeeKaine Says He Has Votes To Pass Iraq War Repeal In Senate New Hurdle Slows Trillion Infrastructure Bill This week: Senate starts infrastructure sprint LAKE (R-Utah).
“As many as half of the pay-fors are just fake,” he added.
CBO’s projection comes as a disappointment to tax hawks in Congress, but not a total surprise.
The lead authors of the legislation, including Sen. Rob PortmanRobert (Rob) Jones PortmanSenate looks into possible weekend finish for T-infrastructure bill Kaine Says He Has Votes To Pass Iraq War Repeal In Senate Overnight Defense: Senate Panel Votes to Remove Permission for Iraq War | Police officer fatally stabbed outside Pentagon ID’d | Biden admin approves first arms sale in Taiwan LAKE (R-Ohio), had already admitted to colleagues that the budget bureau had indicated that it would assess the various fees in the legislation as only part of the bill’s total cost.
Portman’s staff worked for weeks to notify other Republican Senate offices that the CBO would view the fees as only partially covering the cost of the bill.
The Ohio Republican and his staff have also pointed to additional materials, such as CBO estimates not included in the official score, that indicate the real budgetary impact of the infrastructure bill won’t add to the deficit as much as Thursday. estimate suggests.
Those arguments seem compelling, as senators said they don’t expect a significant drop in support now that the CBO score has been released.
Several Republican swing votes had already said they would have no problem with a cost analysis that showed $550 billion in new spending was not fully offset.
“The Congressional Budget Office has long been hampered by rules that make them wrong all the time. They’ve never been exactly right,” Sen said. Todd YoungTodd Christopher YoungKaine Says He Has Votes To Pass Iraq War Repeal In Senate Overnight Defense: Senate Panel Votes to Remove Permission for Iraq War | Police officer fatally stabbed outside Pentagon ID’d | Biden admin approves first arms sale in Taiwan Senate Panel Votes to Revoke Iraq War Permission LAKE (R-Ind.) on Monday. “There is real-world scoring, as my constituents understand, such as when you reclaim unused COVID money or use other unspent government money.
“The Congressional Budget Office doesn’t give credit for that and instead counts that as a whole in spending,” he added. “My constituents are smart enough to understand that that’s an artificial score. So it doesn’t bother me. I dive into the details and look at the real-world accounting, as opposed to Washington, DC, CBO accounting.”
CBO acknowledged in the report that its cost estimate did not include the possibility that increased investment in infrastructure would boost the economy and, in turn, boost federal tax revenue.
“Introducing this legislation would create macroeconomic effects which in turn would cause budgetary feedback. CBO has not estimated those effects or their budgetary implications for this legislation,” the agency wrote.
In a draft proposal distributed to senators in late June, the bipartisan group of negotiators estimated that increased economic activity would increase government revenues by $58 billion under a dynamic scoring model, a model that differs from the CBO’s approach.
The CBO estimated the bipartisan legislation would bring in $6.18 billion from higher custom user fees, $3.16 billion from manufacturers’ discounts for unused drugs paid for by Medicare, $50.8 billion from delaying a Trump-era rule. about providing discounts for prescription drugs under Medicare and $10.18 billion from spectrum auctions.
The budget score on Thursday was released shortly after the CBO said it expects the federal deficit to reach $3 trillion this year. It also forecast an average annual deficit of $1.2 trillion for 2022 to 2031.
Updated at 4:48 PM