ToplineThursday's report by the Congressional Budget Office estimates that the $1 trillion proposal will add $256 billion over 10 years to the nation’s budget deficit. This means nearly half the proposed spending would end up being added to the country's increasing debt load despite calls for spending cuts, reallocations, and increased revenues.Senator Bill Cassidy from Louisiana was speaking before the Senate's second procedural voting on the... [+] $550billion bipartisan infrastructure bill. 2021 Bloomberg Finance LPThe Key FactsCBO forecasts that the Infrastructure Investment and Jobs Act will increase the government's net spend by $315 billion over the next 10 year, while increasing revenues only by $50 billion. The White House announced the proposal last week. It was to be funded with more that $250 billion in unspent Covid-19 relief funds. CBO also projected that it would include new revenues, tax enforcement for cryptocurrency, and other bipartisan measures. The Senate's chances of passing the bill are uncertain. However, seven GOP senators asked for a CBO estimate on Tuesday to show the bill's impact on the federal deficit. They said that while they support infrastructure, it must be paid for. Sen. Steve Daines (R-Mont. Sen. Steve Daines (R-Mont.), who voted against the infrastructure proposal last Wednesday, issued a statement Thursday blasting the estimate and promising to vote against the final bill. He also pointed out that lawmakers had "promised the bill would fully pay for and not increase [the] national debt." The bill was approved by all 17 Republicans and the Democratic senators on Wednesday. This sets the stage for approval in the chamber. However, its fate in Congress is uncertain due to a number of progressives who have indicated that they won't support an infrastructure vote unless the Senate passes a separate, highly divisive $3.5 trillion budget bill.TangentIn the face of inflation worries that have rocked markets recently, the gap between revenue and government spending has increased to $2.2 trillion in 2021. This is more than the $2.7 trillion last year, but still more than historic deficits of less then $1 trillion. A bigger deficit means that the government has taken on more debt. This can limit the government’s ability to spend more to combat economic downturns or fight pandemics.What to WatchMajority Leader Chuck Schumer (D.N.Y.), said Thursday that a vote in the Senate to approve the infrastructure bill is expected to take place by Saturday. The House would then approve the package.Big Number$35 trillion. CBO estimates that the nation's national debt will rise to $35 trillion by the end this year, before adjusting for fiscal stimulus.Continue readingThe US Budget Deficit Has Hit $1 Trillion. More Biggish Stimulus Is Set To Increase Spending (Forbes).New Bridges, Roads and Internet: This is What It Looked Like in the $1 Trillion Infrastructure Bill Supported By The Senate (Forbes).
