Phase Two Coronavirus Bill Estimated to Increase Federal Budget Deficit by $192 Billion
New estimates from the Congressional Budget Office (CBO) reveal “that the Families First Coronavirus Response Act will increase federal deficits by $192 billion”.
Congress’ Phase Two coronavirus relief bill, which provided paid sick leave, free coronavirus testing, expanded food assistance and unemployment benefits, and more, is separate from the Phase Three, $2 Trillion relief bill.
CBO’s report also mentioned many factors which make the estimated budgetary effects of the act “particularly uncertain”, adding that the “longer the pandemic, the greater the increase in the deficit is likely to be.”
Previously, CBO projected a federal deficit of $1.0 trillion in 2020, a projection which Federal Reserve Chairman Jerome Powell remarked put “the federal budget… on an unsustainable path”.