CBO: Coronavirus stimulus packages to add $2.4T to federal deficit

5 months ago 34
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June 16 (UPI) -- Economic measures passed by Congress in reaction to the coronavirus pandemic will add another $2.4 trillion to the federal deficit, the Congressional Budget Office said Tuesday.

The non-partisan agency said the Coronavirus Aid, Relief and Economic Security Act, signed by President Donald Trump on March 27, accounts for the bulk of the deficit increase. The legislation is expected to add $1.72 trillion to the deficit over the course of a decade.

Included in the CARES Act was the Paycheck Protection Program, which provided $350 billion in grants to small businesses for payroll and other expenses during the COVID-19 pandemic.

Another bill that included an expansion of the PPP in April added the next-largest chunk to the federal deficit -- $483 billion, the CBO said. Trump signed the Paycheck Protection Program and Health Care Enhancement Act on April 24.

The Families First Coronavirus Response Act, which provided sick leave and enhanced unemployment, will add $192 billion to the deficit, while the Coronavirus Preparedness and Response Supplemental Appropriations Act, signed March 6, will add $8 billion.

And there could be more to come.

This month, Congress has been negotiating a fifth stimulus package that could provide a second direct payment to Americans and an expansion of unemployment benefits. Democrats in the House have unveiled legislation that could cost upwards of $3 trillion.

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