Debt Ceiling Deal Will Trim National Debt by $1.5 Trillion by 2033: CBO
The debt ceiling agreement reached by President Joe Biden and House Speaker Kevin McCarthy (R-Calif.) last month will reduce the national debt and decrease net interest payments over the next decade, the Congressional Budget Office (CBO) said in a new report.
The nonpartisan budget watchdog assessed projections in its May 2023 baseline and the estimated effects of the Fiscal Responsibility Act (FRA) signed into law on June 3 by Biden.
After calculating the numbers inside the debt limit agreement, the CBO found that the FRA would reduce the cumulative deficit for the 2024-2033 period by about $1.5 trillion to $18.8 trillion, down from the previous expectation of $20.3 trillion….