Tax & Spend
CBO Jacks Up US 2024 Budget Gap Forecast by 27% to Nearly $2 Trillion
- Ukraine aid, student loan plan help add $400 billion to gap
- FDIC seen struggling to recoup recent bank failure payments
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The nonpartisan Congressional Budget Office ramped up its estimate for this year’s US budget deficit by 27% to almost $2 trillion, sounding a fresh alarm about an unprecedented trajectory for federal borrowing.
The CBO sees the deficit reaching $1.92 trillion in 2024, up from $1.69 trillion in 2023, according to updated projections released in Washington Tuesday. The new estimate is more than $400 billion larger than what the CBO anticipated in February — in part reflecting additional spending, including aid for Ukraine, enacted since then, along with Biden administration student-loan relief measures.