Congress will have to complete the review before the September 30 deadline.Budget, otherwise the government shutdown will occur again in 2019, but the current progress is slow. At the same time, the total US national debt exceeded 33 trillion yuan for the first time on the 18th, and may rise to 50 trillion yuan by 2029. The fiscal outlook is not optimistic.
The New York Times reported that unless Congress could pass more than a dozen appropriations bills in the past ten days, or agree on short-term measures to increase federal funding and maintain the current budget, the government would shut down on October 1. Will go. Lok SabhaRepublican PartyOver the weekend, Democrats considered a short-term proposal that would cut most federal agency spending and restore Trump-era strict border measures that would extend funding through the end of October. But the proposal offers little hope of breaking the impasse and Democrats are less likely to support it, and there are still divisions within the Republican Party.
This seems to be a return to this summer’s bipartisan debate over raising the debt ceiling. The fight ultimately ended with an agreement between the two parties to suspend the debt ceiling for two years and cut federal spending by $1.5 trillion over 10 years, including freezing some New Year funds and spending in 2025. These included limiting growth to 1%; But even taking these spending cuts into account, the debt is still expected to exceed $50 trillion by 2029 as interest on the debt rises and the cost of social safety net programs continues to rise.
Some federal spending plans passed during the Biden administration cost more than previously expected. For example, the cost of the “Inflation Reduction Act” was originally estimated to be about 400 billion yuan over ten years; But the bill could cost more than $1 trillion, according to university budget models from the University of Pennsylvania’s Wharton School of Business.
Additionally, pandemic aid programs are still costing the federal government money. The Internal Revenue Service (IRS) said last week that applying for the employee retention credit tax benefit was originally expected to cost about $55 billion, but amid concerns of fraud and abuse, it has spent $230 billion so far. Have gone. The program is being stopped.
Ministry of FinanceA report last week showed that the deficit in the first 11 months of this fiscal year was 1.5 trillion yuan, up 61% from the same period last year. Treasury Secretary Janet Yellen said in an interview on the 18th that she is satisfied with the country’s fiscal policy because the proportion of interest costs in the economy is still controllable, but she still recommended paying attention to future spending.