The following is from Sen. Chuck Grassley’s office.

The Congressional Budget Office (CBO) has released an estimate showing that the federal deficit for Fiscal Year 2024 has reached $1.8 trillion—double what was projected when President Biden and Vice President Harris took office. Senate Budget Committee Ranking Member Sen. Chuck Grassley (R-Iowa) issued a statement, calling for a reversal of the administration’s spending policies.

Sen. Grassley criticized the Biden-Harris administration for “ignoring resounding messages” from the American people and international credit agencies, opting instead for “a spendthrift agenda” that is damaging the economy for future generations.

“President Biden and Vice President Harris have ignored resounding messages from Iowans and Americans nationwide, as well as alarms from global credit ratings companies.
By consistently choosing a spendthrift agenda over fiscal sanity, this administration has hamstrung our economy for generations to come.”

Set. Chuck Grassley, (R-Iowa)

According to the CBO’s report, the FY 2024 deficit rose by $139 billion compared to FY 2023, driven by a combination of executive actions and increased interest payments on the national debt. Federal spending jumped $617 billion, a 10% increase from last year.

Key Points from CBO’s Report:

• Deficit: The deficit reached $1.8 trillion in FY 2024, up $139 billion from the previous year.
• Spending: Spending increased by 10%, or $617 billion, compared to FY 2023.
• Interest Payments: Net interest payments on the national debt climbed to $950 billion, a 34% increase from last year.

Background on the Biden-Harris Administration’s Irresponsible Economic Record:

Moody’s Investors Service downgraded the U.S. credit outlook last year, citing the growing deficit as a key reason. Both Federal Reserve Chairman Jerome Powell and the CBO Director warned that the U.S. is on an “unsustainable fiscal path.”

Still, the Biden-Harris administration pressed forward with trillion-dollar student loan bailouts and a $21 billion Medicare cost-shifting plan. These policies aimed to counter the negative impacts of the Inflation “Reduction” Act, which led to higher premiums and fewer plan options for seniors.

Additionally, rising borrowing costs and the growing national debt have pushed net interest payments beyond discretionary defense spending. In 2021, OMB Director Shalanda Young argued that not borrowing trillions during a time of low interest rates would be a “historic missed opportunity.” Recently, Sen. Grassley criticized the OMB for not providing enough data to the CBO to fully assess the 2025 budget’s fiscal impacts.

For the full CBO report, click here.