Watchdog: Friday’s Budget Deal in Congress Could Raise Debt $2.1 TRILLION Watchdog: Friday’s Budget Deal in Congress Could Raise Debt $2.1 TRILLION – NTK Network

Watchdog: Friday’s Budget Deal in Congress Could Raise Debt $2.1 TRILLION

The deal Congress passed Friday morning ended a brief government shutdown, but at a cost that will be paid by future generations of Americans.

By NTK Staff | 02.09.2018 @10:15am
Watchdog: Friday’s Budget Deal in Congress Could Raise Debt $2.1 TRILLION

Congress ended a very brief government shutdown on Friday morning, with strong majorities in both the Senate and the House passing a bill that funds the government through March 23 and raises spending caps for the next two fiscal years.

The vote in the Senate, at 1:31am ET, was 71 to 28, with 34 Republicans, 36 Democrats, and one independent supporting the bill. Sixteen Republicans, 11 Democrats, and one independent opposed the bill.

The vote in the House, at 5:32am ET, was 240 to 186, with 167 Republicans and 73 Democrats supporting the bill. Sixty-seven Republicans and 119 Democrats opposed the bill.

Although the vote ended an hours-long shutdown and kicked the spending can six weeks down the road, at least one budget watchdog is warning that the deal on spending caps will bust open America’s debt to the tune of up to $2.1 trillion.

The Committee for a Responsible Federal Budget (CRFB) wrote:

This deal comes with a hefty price tag of $320 billion over ten years according to the Congressional Budget Office, despite the fact that most of the deal is only temporary. It would push the deficit in 2019 clearly above $1 trillion to $1.2 trillion.

That $320 billion mostly reflects near-term costs, however. If temporary provisions in the bill were made permanent, the ultimate cost could increase to $1.7 trillion, or $2.1 trillion including interest, and increase debt to 105 percent of Gross Domestic Product (GDP) by 2027. Coming on the heels of the $1.5 trillion tax cut in December, this deal would be another huge blow to fiscal responsibility.

In addition, CRFB noted that while the deal adds $419 billion in 10-year costs, it only offsets less than one quarter ($100 billion) of those 10-year costs.

The budget deal is considered a win for some in both parties, and ends the specter of another shutdown, but at a cost that will be paid by future generations of Americans.

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