July 11, 2023

CBO Reports $1.4 Trillion Deficit in First Nine Months of FY2023 Under Biden’s Watch

$1.4 trillion. That is how high the federal deficit is under President Biden’s watch in the first nine months of Fiscal Year 2023 alone, according to a new report released today by the nonpartisan Congressional Budget Office.

budget deficit 

This striking number is $875 billion (or 170 percent) higher than the same point last year. In just nine months, the Fiscal Year 2023 deficit already exceeds last year’s full year deficit.
Reckless Sending is the Culprit:
Per CBO, spending is up $455 billion—a 10 percent increase from last year. Where—and why—is that increased spending taking place?

  • Skyrocketing Interest Payments. The largest spending increase was for interest payments on the debt, which increased by $135 billion (or 37 percent) compared to same point last year. 
  • Unconstitutional Student Loan Bailout. Spending for the Department of Education increased by $22 billion (or 15 percent), thanks to President Biden’s student loan bailouts which the U.S. Supreme Court recently ruled unconstitutional.
  • Growing Entitlement Crisis. Social Security spending increased by $98 billion (or 11 percent), impacted by high inflation. Similarly, Medicare spending increased by $91 billion (or 17 percent), while Medicaid spending increased by $34 billion (or 8 percent).
  • Unneeded COVID Stimulus Spending. Spending for Pension Benefit Guaranty Corporation increased by $34 billion because of Democrats’ American Rescue Plan. 
  • Bank Failures Under Biden's Economic Mismanagement. Federal Deposit Insurance Corporation spending increased by $52 billion (such spending was negative last year), as the agency dealt with bank failures in the spring.

The Bottom Line: Our nation’s fiscal health is rapidly deteriorating, our national debt is unsustainable, and if we fail to change course, we will experience a debt crisis that will weaken our economy, compromise our security, and jeopardize America’s leadership in the world.
House Republicans will continue our to work to rein-in reckless spending, reform entitlement programs, and return to pro-growth policies that will unleash prosperity once again.

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