River Bend Times

The Congressional Budget Office (CBO) has reported that the deficit for Fiscal Year 2024 is estimated to reach $1.8 trillion. This figure is double what was projected when the Biden-Harris administration began its term. Senate Budget Committee Ranking Member Chuck Grassley expressed concern over this development.

"President Biden and Vice President Harris have ignored resounding messages from Iowans and Americans nationwide, as well as alarms from global credit ratings companies," Grassley stated. He criticized the administration's fiscal policies, saying they prioritize spending over economic stability, leading to long-term consequences for the economy.

Grassley pointed out that Vice President Harris' recent proposals do not address public concerns and instead continue policies that have resulted in significant economic impacts, such as a more than 20 percent rise in prices over four years.

The CBO report highlights Moody’s Investors Service's decision last year to downgrade the U.S. credit outlook due to the deficit. It also notes warnings from independent experts like the Federal Reserve Chairman and CBO Director about the unsustainable fiscal path of the nation.

Despite these warnings, Grassley noted that the administration has proceeded with expensive initiatives such as student loan bailouts and a Medicare cost-shifting plan worth $21 billion. These actions are viewed as attempts to mitigate negative effects on seniors caused by inflation-related legislation.

Furthermore, increased borrowing costs and federal debt have led to higher spending on net interest payments, surpassing discretionary national defense outlays. In early 2021, OMB Director Shalanda Young had advocated for borrowing at low interest rates as an opportunity not to be missed.

Grassley recently criticized OMB for failing to provide sufficient information for CBO's analysis of the Biden-Harris administration’s 2025 budget despite previous commitments.