CBO assesses Biden-McCarthy debt deal.

The Congressional Budget Office Assesses Biden-McCarthy Debt Ceiling Deal

The Congressional Budget Office released its assessment of President Joe Biden and House Speaker Kevin McCarthy’s (R-CA) debt ceiling deal.

The assessment projected that the budget deficit would be reduced by roughly $1.5 trillion from 2023-2033, and reductions in discretionary outlays would amount to $1.3 trillion from 2024-2033.

Debt Limit Deal: Where It Stands and What Is Still to Come

“The agency’s projections of budget deficits would be reduced by about $1.5 trillion over the 2023–2033 period relative to its May 2023 baseline projections,” the report said.

“Reductions in projected discretionary outlays would amount to $1.3 trillion over the 2024–2033 period. … Mandatory spending would, on net, decrease by $10 billion, and revenues would, on net, decrease by $2 billion over the 2023–2033 period. … As a consequence, interest on the public debt would decline by $188 billion,” it added.

The estimates are likely to bolster McCarthy, who has argued that the deal would lead to historic spending cuts.

“No other debt-limit increase in the past decade has reduced overall spending, reduced nondefense spending and reduced the deficit. The Fiscal Responsibility Act is true, transformative spending reform,” McCarthy wrote in a Wall Street Journal op-ed, referring to the legislative name for the deal.

Click here to read more from the Washington Examiner.

The main feature of the debt ceiling deal for those looking to cut spending is that the bill cuts nondefense discretionary spending next year and only allows a 1% increase for the next six years.

The bill still faces obstacles in the House and Senate, where many have expressed a willingness to vote against it, and the possibility of default still looms.

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