{"id":2270945,"date":"2024-06-18T19:19:01","date_gmt":"2024-06-18T23:19:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cbo-increases-projected-federal-budget-deficit-for-2024-by-400-billion\/"},"modified":"2024-06-18T19:24:22","modified_gmt":"2024-06-18T23:24:22","slug":"cbo-increases-projected-federal-budget-deficit-for-2024-by-400-billion","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cbo-increases-projected-federal-budget-deficit-for-2024-by-400-billion\/","title":{"rendered":"CBO Raises 2024 Federal Budget Deficit Forecast by $400 Billion"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcbo-increases-projected-federal-budget-deficit-for-2024-by-400-billion%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2270945&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The Congressional Budget Office \u2063(CBO) has updated its projection for the U.S. <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/5-reasons-making-taxpayers-pay-off-student-loans-is-a-rotten-idea\/\" title=\"5 Reasons Making Taxpayers Pay Off Student Loans Is A Rotten Idea\">federal budget deficit<\/a> \u2063for the \u2062fiscal year 2024, increasing it by $400 \u200dbillion from its previous \u2062estimate in February, to now $1.9 trillion. This elevation \u2064has been \u2062attributed to various factors, including \u200b$95 \u200dbillion in \u200cnew defense spending \u2064related to the conflicts in Ukraine and \u200dIsrael and support for\u2064 military initiatives in the Indo-Pacific. Additionally, a significant \u2064expense is \u200ccoming from the extension of eligibility for\u200b student debt\u2062 forgiveness by President Biden,\u200c which adds $145 billion to the deficit.<\/p>\n<p>Moreover, the recovery of\u200c $70\u200c billion less than expected due \u2062to bank failures, combined with $50\u2063 billion unforeseen\u200c rise\u2062 in \u200dMedicaid costs and $60 billion in new discretionary\u2062 spending, has further strained the budget. A crucial concern\u200d highlighted by the Wall Street Silver account \u2063and the Federal \u200dReserve\u2063 is the \u2064skyrocketing interest payments on \u200bthe national debt.\u2062 These payments are forecasted to soon exceed both Social Security payments and total spending on national \u2062defense, potentially reaching more than $1 trillion\u2063 annually by 2026.<\/p>\n<p>This current financial trajectory, characterized\u2063 by continued rise in\u200b spending, has led to criticisms towards the Biden administration for\u200c not scaling back to pre-COVID expenditure levels. Major legislations under Biden like the $1.9 trillion American Rescue Plan,\u2062 the $1 \u200ctrillion infrastructure bill, and the inflation Reduction Act have significantly contributed to the \u200dnational \u200cdebt. The inflation brought on by such \u2063high\u2063 levels of deficit spending prompted the Federal Reserve to\u200d <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-economy-adds-336000-new-jobs-in-september-shattering-market-expectations\/\" title=\"US economy surpasses market expectations, adding 336k new jobs in September.\">raise interest\u200d rates<\/a> in an attempt to manage the situation.\u2064 This situation draws concern regarding the sustainability \u200cof America\u2019s\u200d fiscal policies, with many calling for a thoughtful deficit reduction strategy to manage the growing economic\u200c and \u200dnational security \u200crisks.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<header> <a href=\"https:\/\/www.westernjournal.com\/news\/\">  News <\/a>   <span> <\/p>\n<p><a href=\"https:\/\/www.westernjournal.com\/author\/randydesoto\/\">  <\/a> <\/p>\n<p> <span>   By <a href=\"https:\/\/www.westernjournal.com\/author\/randydesoto\/%20\"><span>Randy DeSoto<\/span><\/a> <\/span> <span>   June 18, 2024 at 4:05pm <\/span> <\/span>  <\/header>\n<section>\n<p>The Congressional Budget Office on Tuesday released a revised projected federal budget deficit of $1.9 trillion for fiscal year 2024.<\/p>\n<p>That is an increase of about $400 billion from its February estimate the agency <a href=\"https:\/\/www.cbo.gov\/publication\/60419\" target=\"_blank\" rel=\"noopener\">said<\/a>.<\/p>\n<p>The CBO attributed the rise in the deficit to new spending passed since its last projection, including the $95 billion defense appropriations for the wars in Ukraine and Israel, as well as shoring up allied military preparedness in the Indo-Pacific region.<\/p>\n<p>Other large drivers of the increase are President Joe Biden making more eligible for <a href=\"https:\/\/www.westernjournal.com\/biden-gets-called-tone-deaf-announces-major-student-loan-cancellation\/\" target=\"_blank\" rel=\"noopener\">student debt forgiveness<\/a>, with a price tag of $145 billion. Additionally, the federal government recovered $70 billion less in funds stemming from bank failures.<\/p>\n<p>Further, Medicaid costs came in $50 billion higher than expected, and the federal government passed $60 billion more in new discretionary spending programs.<\/p>\n<p>A primary component of the federal budget deficit overall is <a href=\"https:\/\/www.westernjournal.com\/musk-sounds-alarm-deficits-biden-spending-america-oblivion\/\" target=\"_blank\" rel=\"noopener\">increased interest payment costs<\/a> in servicing the national debt.<\/p>\n<p>The Wall Street Silver account on X highlighted that the U.S. is on pace for more than $1.2 trillion in interest payments on the federal debt over the next 12 months.<\/p>\n<p>\u201cWithin the next few years, interest on the debt will exceed Social Security payments and become the largest item in the budget,\u201d Wall Street Silver wrote.<\/p>\n<blockquote>\n<p dir=\"ltr\" lang=\"en\">Everyone is posting that the annualized number is about $1.059 trillion.<\/p>\n<p>However the interest on the debt for just May 2024 was $103 billion. Debt will grow another $2 trillion or more in the next 12 months.<\/p>\n<p>We are already on pace for over $1.2 trillion in annualized payments\u2026 <a href=\"https:\/\/t.co\/ZF0yrmHmJm\">https:\/\/t.co\/ZF0yrmHmJm<\/a><\/p>\n<p>\u2014 Wall Street Silver (@WallStreetSilv) <a href=\"https:\/\/twitter.com\/WallStreetSilv\/status\/1803058882169667719?\">June 18, 2024<\/a><\/p>\n<\/blockquote>\n<div id=\"firefly-poll-container\">\n<p>Does the deficit pose a major threat U.S. national security?<\/p>\n<\/p><\/div>\n<p>The post included a graphic from the <a href=\"https:\/\/www.westernjournal.com\/federal-reserves-latest-announcement-delivers-killer-blow-bidens-re-election\/\" target=\"_blank\" rel=\"noopener\">Federal Reserve<\/a> showing the U.S. interest payments this year will exceed the total cost of funding the Defense Department, which has been the <a href=\"https:\/\/www.cbo.gov\/publication\/59727\" target=\"_blank\" rel=\"noopener\">largest single ticket<\/a> item besides the entitlement programs of Social Security and Medicare.<\/p>\n<p>The nonpartisan <a href=\"https:\/\/www.crfb.org\/blogs\/interest-costs-will-leapfrog-medicare-and-defense-year\" target=\"_blank\" rel=\"noopener\">Committee for a Responsible Federal Budget<\/a> further broke the interest payment number down for the fiscal year, which ends on Sept. 30.<\/p>\n<p>\u201cAt a projected $870 billion, interest will surpass total spending on national defense ($822 billion) in 2024 and grow well beyond the defense budget over time,\u201d the CRFB said.<\/p>\n<p>Further, it said, \u201cInterest costs will also slightly exceed net Medicare spending ($851 billion) this year and remain in line with Medicare costs in future years. That would make interest the second largest line item in the budget after Social Security.\u201d<\/p>\n<p>The organization projected that interest payments on the national debt will exceed $1 trillion per year by fiscal 2026.<\/p>\n<p>By way of comparison, it <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/musk-sounds-alarm-about-deficits-under-biden-spending-america-into-oblivion\/\" title=\"Musk Warns Biden's Deficits Could Lead to Financial Ruin: 'Spending America Into Oblivion\">noted net interest payments<\/a> on the debt were $223 billion in fiscal year 2015 and $352 billion in fiscal year 2021, which included Biden\u2019s first nine months in office.<\/p>\n<p>The reason interest payments have exploded is the massive rise in spending under Biden and the Democrats in Congress. They never returned the country to pre-COVID levels.<\/p>\n<p>Some major <a href=\"https:\/\/www.westernjournal.com\/fact-check-biden-loves-claim-cut-deficit-numbers-highlight-painful-truth\/\" target=\"_blank\" rel=\"noopener\">new spending<\/a> that passed under Biden included the $1.9 trillion <a href=\"https:\/\/www.westernjournal.com\/bidens-budget-promises-deficit-cut-inflation-reduction-acts-massive-cost-overruns-cast-doubt\/\" target=\"_blank\" rel=\"noopener\">American Rescue Plan<\/a>, which had <a href=\"https:\/\/www.congress.gov\/bill\/117th-congress\/house-bill\/1319\/all-actions?overview=closed&#038;q=%7B%22roll-call-vote%22%3A%22all%22%7D\" target=\"_blank\" rel=\"noopener\">no Republican support<\/a> in Congress; the\u00a0$1 trillion<a href=\"https:\/\/www.npr.org\/2021\/11\/15\/1055841358\/biden-signs-1t-bipartisan-infrastructure-bill-into-law#\" target=\"_blank\" rel=\"noopener\"> infrastructure bill<\/a>, which garnered some GOP support in the Senate and a handful of members in the House; and the Inflation Reduction Act, which had <a href=\"https:\/\/www.congress.gov\/bill\/117th-congress\/house-bill\/5376\/actions#:~:text=Presented%20to%20President.-,08%2F12%2F2022%20Resolving%20differences%20%2D%2D%20House%20actions%3A%20On,51%20%2D%2050.\" target=\"_blank\" rel=\"noopener\">no GOP backing<\/a>.<\/p>\n<p>The \u201cgreen\u201d initiatives included in the IRA are costing almost three times more than the administration forecast, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-08-16\/total-cost-of-joe-biden-s-inflation-reduction-act-is-rising-one-year-later\" target=\"_blank\" rel=\"noopener\">Bloomberg <\/a>reported in August 2023.<\/p>\n<p>In April 2023, researchers at the University of Pennsylvania\u2019s Wharton School of Business, working with the investment firm Goldman Sachs, updated their <a href=\"https:\/\/budgetmodel.wharton.upenn.edu\/estimates\/2023\/4\/27\/update-cost-climate-and-energy-inflation-reduction-act\" target=\"_blank\" rel=\"noopener\">estimated cost<\/a> of the legislation\u2019s green initiatives from $385 billion over a 10-year period to more than $1 trillion.<\/p>\n<p>Additionally, the Federal Reserve increased <a href=\"https:\/\/www.westernjournal.com\/federal-reserve-chair-admits-confidence-rattled-wholesale-inflation-unexpectedly-surges\/\" target=\"_blank\" rel=\"noopener\">interest rates<\/a> to combat the 50-year-high inflation the nation experienced due in large part to too much deficit spending, economists on both sides of the political aisle have <a href=\"https:\/\/www.westernjournal.com\/trumps-top-economic-advisor-lays-exact-causes-inflation-biden-falsely-blaming-others\/\" target=\"_blank\" rel=\"noopener\">argued<\/a>.<\/p>\n<p>The CRFB concluded regarding America\u2019s fiscal situation, \u201cThoughtful deficit reduction can help to reduce interest costs, both by lowering debt and putting downward pressure on interest rates.\u201d<\/p>\n<p>\u201cAbsent such action, debt will represent a growing threat to our economy, our health care system, and our national security,\u201d it said.<\/p>\n<hr>\n<div>\n<p><b><i>An Important Message from Our Staff:<\/i><\/b><\/p>\n<p><i><span>We who work here at The Western Journal have fought for years against Big Tech and the elites who want to shut us down and then shut America down. <\/span><\/i><\/p>\n<p><i><span>Make no mistake \u2014 nothing will be the same after November 2024. Will you help us fight? Will you <\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>help us expose the America-hating elites<\/span><\/i><\/a><i><span>  who will do everything they can to steal this election? <\/span><\/i><\/p>\n<p><i><span>We\u2019re a small group of people fighting to save the country for our readers and for our own family and friends. <\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>Can we count on your help?<\/span><\/i><\/a><\/p>\n<p><i><span>At this point, Big Tech has cut off our access to 90% of advertisers. Imagine if someone took 90% of your paycheck and there was nothing you could do. They\u2019re trying to starve us out.<\/span><\/i><\/p>\n<p><i><span>Donations from readers like you have literally helped keep our lights on, and <\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>we need you<\/span><\/i><\/a><i><span>  now more than ever. <\/span><\/i><\/p>\n<p><i><span>We operate on a shoestring budget, but with that budget, we terrify the globalists. Please help us continue the fight. <\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>Stand with us<\/span><\/i><\/a><i><span>, and we will never surrender.<\/span><\/i><\/p>\n<p><i><span>Thank you for reading The Western Journal and for believing in America. <\/span><\/i><\/p>\n<p><i><span>It is a pleasure to serve you.<\/span><\/i><\/p>\n<p><i><span>P.S. Please don\u2019t let the America-hating left win. <\/span><\/i><a href=\"https:\/\/www.paypal.com\/donate\/?hosted_button_id=BM6XAWRJ8NS7A&#038;utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>Stand with us today<\/span><\/i><\/a><i><span>!<\/span><\/i><\/p>\n<\/p><\/div>\n<div id=\"author-info-44657\">\n<p><a href=\"https:\/\/www.westernjournal.com\/author\/randydesoto\/\">  <\/a> <\/p>\n<div>\n<p><label for=\"summary-tab-radio-44657\">Summary<\/label><label for=\"more-info-tab-radio-44657\">More<span> Biographical Information<\/span><\/label><label for=\"posts-tab-radio-44657\">Recent<span> Posts<\/span><\/label><label for=\"contact-tab-radio-44657\" onclick=\"if( typeof grecaptcha=='undefined' ) { let cap_s=document.createElement( 'script' ); cap_s.src='https:\/\/www.google.com\/recaptcha\/api.js?render=6LeJFcsUAAAAAPsIEqvB1EebWbZfqRUe6ebMpGy7'; document.body.appendChild( cap_s ); }\">Contact<\/label><\/p>\n<div>\n<p>Randy DeSoto has written more than 3,000 articles for The Western Journal since he joined the company in 2015. He is a graduate of West Point and Regent University School of Law. He is the author of the book &#8220;We Hold These Truths&#8221; and screenwriter of the political documentary &#8220;I Want Your Money.&#8221;<\/p>\n<\/p><\/div>\n<div>\n<p>  Birthplace <\/p>\n<p>  Harrisburg, Pennsylvania <\/p>\n<p>  Nationality <\/p>\n<p>  American <\/p>\n<p>  Honors\/Awards <\/p>\n<p>  Graduated dean&#8217;s list from West Point <\/p>\n<p>  Education <\/p>\n<p>  United States Military Academy at West Point, Regent University School of Law <\/p>\n<p>  Books Written <\/p>\n<p>  We Hold These Truths <\/p>\n<p>  Professional Memberships <\/p>\n<p>  Virginia and Pennsylvania state bars <\/p>\n<p>  Location <\/p>\n<p>  Phoenix, Arizona <\/p>\n<p>  Languages Spoken <\/p>\n<p>  English <\/p>\n<p>  Topics of Expertise <\/p>\n<p>  Politics, Entertainment, Faith <\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On June 18, 2024, the Congressional Budget Office updated its forecast, projecting a $1.9 trillion federal deficit for FY 2024, up $400 billion since February. The increase is due to new spending, the CBO explained<\/p>\n","protected":false},"author":662,"featured_media":2270946,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/06\/Joe-Biden-7.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-2270945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/06\/Joe-Biden-7.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2270945","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/662"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2270945"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2270945\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2270946"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2270945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2270945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2270945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}