The Congressional Budget Office estimated Thursday that the bipartisan Senate infrastructure bill will add $256 billion to the deficit over the next decade, undercutting its backers’ claims the spending had been offset.
In FY2020, the deficit hit a record $3.1 trillion. So far in FY2021, the deficit is $2.2 trillion. The national debt is climbing to $29 trillion for the first time in U.S. history.
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The federal government is on track to reach the statutory debt limit in the fall, which would trigger a government shutdown, according to a Congressional Budget Office (CBO) estimate.
The U.S. is projected to reach the debt ceiling of $28.5 trillion by October or November, a CBO report released Wednesday stated. If Capitol Hill lawmakers don’t reach an agreement on raising the limit higher, the government could undergo its third shutdown in less than four years.
“If the debt limit remained unchanged, the ability to borrow using those measures would ultimately be exhausted, and the Treasury would probably run out of cash sometime in the first quarter of the next fiscal year (which begins on October 1, 2021), most likely in October or November,” the CBO report said.
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The state government of California has been revealed to have spent $13 million on providing security for 120 empty houses for five months, even as a homeless crisis ravaged the state, Fox News reports.
In a report broken by local outlet Fox 11, the California Department of Transportation (CalTrans) paid $9 million to the highway patrol from November 2020 to April 2021, and gave another $4 million to a private security firm over the same period, all for the purpose of protecting the vacant houses in Pasadena.
In a statement addressing the report, CalTrans said that the houses had been purchased by the government 60 years ago, when there were plans for a change in the local infrastructure by connecting the 710 freeway to the 210. However, that project “is no longer moving forward,” the government statement declared.
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As a very young man, I was fortunate enough to start my own company out of my apartment using a small amount of investment capital from friends and family. Over time, that business grew to have over 6,000 employees and revenues in excess of $2 billion. Over nearly a 40-year span, my team and I built what some would consider a remarkable track record, as measured by both sales and profits.
Because of my experience growing that business, I feel a special kinship with small, privately owned businesses and their owners. I also come from a middle-class background, one that shaped me into the person I am today. It is through both the lens of entrepreneur and member of the middle-class that I look through when reflecting upon this Independence Day.
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2020 and 2021 are two sides of the same coin: Price instability brought about by the dollar being either relatively too strong or too weak, which can lead to or exacerbate economic slowdowns, creating higher unemployment and worse if the conditions persist for too long.
In 2020, at the height of the Covid pandemic, the problems included the global economy being shut down plus local lockdowns resulting in a massive recession and a flight to safety into U.S. treasuries as interest rates collapsed, making the dollar too strong. With the onset of deflation, consumer prices plummeted in March and April 2020, with oil even dropping briefly below zero dollars for the first time in history, and a concurrent rise of unemployment as 25 million Americans lost their jobs.
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President Joe Biden’s proposed $2 trillion American Jobs Plan could end up costing taxpayers more than $666,666 per job created.
The Washington Post gave Biden “two Pinocchios” for saying the American Jobs Plan, his infrastructure and jobs proposal, will create 19 million jobs. Both Biden and his Transportation Secretary Pete Buttigieg have made the 19 million jobs claim. The source of the statement is a Moody’s analysis, which CNN pointed out had estimated the U.S. economy would add about “16.3 million jobs over the same period if the infrastructure proposal does not get passed.”
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House Democrats blocked a Republican attempt on Monday to require any proposed climate change legislation to also include its projected cost.
Under the Pay As You Go (PAYGO) rule, any additional government spending proposed must be accompanied by tax increases or separate cuts. After a push from several lawmakers in the Democratic Party’s progressive wing, however, the rules package for the 117th Congress states PAYGO will not apply to legislation relating to the necessary economic recovery or U.S. efforts to combat climate change.
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Is America in a recession? It’s an unpopular question to ask, but it has now been over 3 months since COVID-19 restrictions were initiated and it is time for us to get realistic about where we are economically so that we can take the proper steps to minimize further damage to our economy. At this point, the unfortunate reality is that regardless of what we do, it is likely that it will take at least several years to see a partial recovery of economic loss and the time that it will take for a complete recovery remains unknown at this point.
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The Minnesota legislature failed to reach agreements on a major construction bill, tax relief, or state employee contracts before the midnight Sunday deadline for this session.
The lawmakers could still find a middle ground in a special June session.
Minnesota House Republicans Saturday blocked Democrat’s $2 billion bonding bill. Bonding bills must originate in the House and require a three-fifths majority, or 81 votes, to pass. The final tally fell six votes short.
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A two-and-a-half billion dollar infrastructure spending package – touted as a top priority for 2020 by the DFL-controlled Minnesota House – fell short of the necessary three-fifths supermajority of votes needed Saturday.
With a final count of 75-58 along party lines the measure missed by a scant six votes.
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The immediate challenge of COVID-19 has been cast as an examination of how individual Americans will fare should they be exposed to the virus. The effort to arrest the spread of the virus has brought unprecedented changes in the daily routines of all Americans. The limitation of activity is apparent when one walks outside. There is a marked silence, regardless of the time of day, almost eerie, that gives one pause.
The check on movement is accompanied by images of field hospitals and graphs showing curves and spreads displayed across news sites. While many are changing their daily routines to comply with the requirements of staying at home and practicing social distancing, a broader concern is the effect on our American democratic foundation.
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President Donald Trump praised the Federal Reserve for cutting the federal funds rate to a range of 0 percent to 0.25 percent, and restarting quantitative easing with $500 billion of U.S. treasuries purchases and $200 billion of mortgage purchases in response to the Chinese coronavirus global pandemic.
“It makes me very happy and I want to congratulate the Federal Reserve,” he said. “That’s a big step and I’m very happy they did it.” Trump has been hounding the Fed for years to cut interest rates to make the dollar more competitive against trading partners’ currencies including the yuan, euro and peso. Now he gets his wish.
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One initiative in President Donald Trump’s fiscal 2021 budget, to be presented to Congress Monday, targets waste, fraud and abuse of taxpayer money.
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State lawmakers nationwide are spending more money, but they are also replenishing rainy day funds in preparation for the next economic downturn, a new report determined.
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The U.S. government spent $33.9 million of taxpayer money on unused textbooks for Afghani children. The books are still sitting in decaying storage units in Afghanistan. American taxpayers also spent $16 million to improve the quality of Egyptian education.
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Every year, the Office of the Inspector General (OIG) audits the Social Security Administration (SSA) and publishes its findings.
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by Justin Bogie Two major issues that Congress will be forced to confront in the coming weeks and months are the debt limit and the future of the Budget Control Act discretionary spending caps. A report from The Hill indicates that negotiations are underway between Congress and the Trump…
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by David Ditch Members of Congress are promoting the concept of changing three programs from the discretionary category (requiring annual appropriations) into mandatory (auto-pilot) spending. Such changes would become a huge backdoor spending increase. Spending limits have come under relentless attack from both parties. In 2013, 2015, and 2018,…
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by Rick Manning In Washington, D.C., every spending program and tax break has a constituency that fights for it. This is why they exist, because somewhere, someone believes that Warren Buffett needs a wind production tax credit, and that opera programming should be taxpayer funded. These constituencies are tightly…
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by Rachel Greszler President Donald Trump issued an executive order effectively freezing federal pay for 2019 at current 2018 levels. Had the president not issued this executive order (and lacking congressional action on federal pay), federal workers would have received a 2.1 percent across-the-board pay increase, as well as a…
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by Rachel Bovard There’s only one area where bipartisanship still reigns in Washington: avoidance. Republican and Democrat leaders this week held hands and used the funeral events for President George H. W. Bush as an excuse to move their funding deadline—which previously expired on December 7—two weeks forward, to December…
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by Michael Bastach Senate Minority Leader Chuck Schumer told President Donald Trump that Democrats won’t cut a deal with him on infrastructure spending unless it includes a slew of policies aimed at fighting global warming. Schumer, the Senate’s top Democrat, called for, among other things, making green energy and…
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by Michael Bastach The Environmental Protection Agency (EPA) paid $14.5 million to foreign nationals to work at agency laboratories over the past 11 years that could have been awarded to U.S. citizens and permanent residents, according to federal investigators. EPA’s Office of Inspector General (OIG) found the agency’s cooperative…
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by Justin Bogie Congress is up to its old tricks again, trying to pass another massive spending bill that uses gimmicks and tricks to push deficit spending even higher. And it thinks it can hoodwink President Donald Trump into signing it. Next week, the House is expected to vote on…
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by Dody Eid and Romina Boccia A congressional select committee on reforming the budget process recently held another public hearing, supposedly with the ultimate aim of designing a more transparent, accountable, and responsible budgetary process. Any such changes should also re-establish and enhance Congress’ power of the purse. But if those are…
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by Jeffery Rendall As I strolled through the excellent and memory-provoking exhibits at the Ronald Reagan Presidential Library (in Simi Valley, CA) the other day I was struck by how similar President Donald Trump’s approach to today’s politics is to the way Ronald Reagan handled the subject a half…
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by Katherine Rohloff All but a relative few farmers and other rural residents have had electricity and telephone service for a generation, but the U.S. government devoted $10 million in the current budget to a duplicative Rural Utilities Service program designed to help pay for energy costs. Taxpayers continue to finance the…
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by Robert Osburn Celebrated this past July 4, America’s founding story of freedom is truly remarkable: unity, courage, integrity, and national integration (incorporating people from around the world). In most other places, the freedom story is bloody, exclusive, and, ultimately, tyrannical. Take Nicaragua, for one example: In 1979, the Sandinistas…
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By Robert Romano 2026. That is when the Medicare Hospital Insurance trust fund will be depleted, according to the Board of Trustees for the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds. That is down from 2029. After that, the share of benefits paid for by revenues will drop until…
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By Printus LeBlanc When President Donald Trump signed the omnibus spending bill back in March, he did so reluctantly. The swamp knew the President’s feelings for the military and hid behind them to fill the omnibus with wasteful spending. The President signed it, hoping some of the spending would be…
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by Justin Bogie President Donald Trump on Tuesday submitted a special message to Congress requesting that $15 billion in unspent funding be rescinded. That’s a good first step toward re-establishing fiscal responsibility. Congress should embrace it and quickly adopt the president’s rescission package. Still, the package does nothing to claw back the…
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