WASHINGTON, D.C. – With the end of one-party Democrat rule in Washington, House Budget Committee Republican Leader Jason Smith (MO-08) issued the following statement detailing the cost to the federal budget of one-party Democrat rule during the 117th Congress:
“Democrats ended this Congress just as they began it, with President Biden and his allies ramming through a reckless $2 trillion spending bill. Over the last two years, the American people have seen their lives upended by one crisis after another – at the border, at the supermarket, and at the gas pump. During this time, rising prices have erased two months’ worth of pay for American workers while federal spending has increased by $10 trillion, a record for a President’s first two years in office.
“During their first 100 days in power, Democrats rammed through their $2 trillion ‘American Rescue Plan’ which sparked today’s inflation crisis and kept millions of workers on the sideline. They passed a massive $625 billion ‘infrastructure’ bill to smuggle through billions in Green New Deal funding that was not paid for. Next, they rammed through a $745 billion so called ‘Inflation Reduction Act’ that will hire 87,000 new IRS agents to target American families, that spends hundreds of billions on handouts to wealthy environmentalists, and that economists have said will do nothing to tame America’s inflation crisis. On top of the spending Democrats in Congress have abetted, President Biden has spent more than $1 trillion by himself through ludicrous executive actions like his massive subsidy to wealthy doctors and lawyers by canceling their student loan debt. There’s even $2.5 trillion in increased interest payments on America’s debt because of the massive spending tab Democrats have racked up.”
Democrats’ Spending Agenda
In his first 23 months in office, President Biden spent more than any other president in U.S. history. Under one-party Democrat rule, spending has increased by over $10 trillion, including:
- $2.5 trillion increase in interest payments on the growing federal debt.
- $1.9 trillion American Rescue Plan Act.
- $745 billion Inflation Reduction Act.
- $1+ trillion on Biden’s Executive Actions.
- $625 billion Infrastructure Investment & Jobs Act.
“The Federal Reserve has had to respond to Biden’s spending spree by raising interest rates at the fastest pace in 40 years and larger than the last 15 years combined. American families can no longer afford to purchase homes or pay off their credit cards this Christmas because of the fallout from the Democrats’ inflation crisis.”
Consequences of Democrat Spending
The highest spike in prices coupled with the fastest increase in interest rates in 40 years.
- Inflation is at a 40-year high of 7.1 percent.
- Inflation has increased 14.3 percent since President Biden took office.
- Real wages have decreased 3.8 percent since President Biden took office.
- To combat the President’s inflation crisis, the Federal Reserve raised interest rates this month, the seventh rate increase since March.
- In total, the federal funds rate has risen by 4.25 percent, the fastest rate hike in 40 years and larger than the last 15 years combined.
- When President Biden took office, the Congressional Budget Office predicted interest rates would not increase until 2024.
- Interest payments on the federal debt reached $103 billion over the months of October and November – an 87 percent increase over the same period last year.
Biden’s Deficit Deceit
Despite massively ramping up spending over the last two years, President Biden and Washington Democrats continue to falsely claim they are cutting deficits.
- In Biden’s first year, the FY 2021 deficit was $2.78 trillion – 2ndhighest in American history and $517 billion higher than the Congressional Budget Office projected it should be.
- 80 percent of Biden’s supposed deficit reduction is expiring or shrinking COVID relief funding, not Executive or Congressionally directed spending reductions.
- Thanks to Republicans’ 2017 Tax Cuts and Jobs Act, revenues reached $4.9 trillion this year, the highest in recorded history
- $900 billion more than CBO projected for FY 2022 when TCJA passed
- $1.6 trillion more than the pre-TCJA revenue levels
- 20% of GDP, tied for the highest level in 77 years
- Revenues were up 21% in 2022 over 2021
- Biden has spent $1+ trillion without Congress via executive actions.
- The deficit in 2022 reached $1.4 trillion, $426 billion higher than CBO previously projected for the year.
“Next week, we mark the end of one-party Democrat rule and the start of a new Republican majority. We will focus on bringing an end to the reckless spending and getting our fiscal house in order while building an economy that is strong. We will repeal the 87,000 new IRS agents Democrats voted to hire and hold our government accountable. Republicans are ready to hit the ground running on day one to fulfill our commitment to America by improving the lives of working class families.”
The Democrats’ Latest $2 Trillion Spending Bill
More spending, more debt, more inflationary pressures spread across 4,155 pages.
- 9 percent ($131 billion) increase in base discretionary spending over FY 2022 – on top of the 7 percent increase in spending Democrats enacted last year.
- $20 billion above President Biden’s FY23 budget request.
- Adds $1.5 trillion to the spending baseline over the next decade.
- Adds an additional $260 billion to the nation’s debt by waiving the Democrats’ own Pay-As-You-Go law to punt responsibility for the past two years of reckless spending.