CBO Finds Budget Deal Will Cost $320 Billion

The Congressional Budget Office has released a series of estimates for the budget deal announced yesterday. The deal would add $320 billion to deficits over the next decade, or almost $420 billion with interest. The bill increases discretionary spending levels by $296 billion over the next two years, includes $89 billion in disaster spending, modest health care changes that roughly net out, and $15 billion in tax cuts from renewing tax breaks that expired at the end of 2016.

As a result of the spending deal and the fact that we already projected deficits to reach $1 trillion next year, the fiscal year 2019 deficit would climb to almost $1.2 trillion.

Because not all money budgeted would be projected to be spent in the 10-year window, the total outlays for discretionary and disaster spending are slightly lower than the increase in the caps.

^{Source: CBO, CRFB Calculations. Totals may not sum due to rounding.}

For more about the likely deficit and debt impacts of the bill, see our estimate from yesterday, Budget Deal Would Assure Permanent Trillion-Dollar Deficits, which we will be updating today. Stay tuned for more analysis.