The House version of President Joe Biden’s coronavirus relief plan would add $1.9 trillion to the federal budget deficit over the next decade, the Congressional Budget Office estimated this weekend.
That figure is in line with Biden’s calls for a $1.9 trillion package, and it reflects Democrats’ determination to hold the line on the president’s calls to “go big” on stimulus despite pressure from Republicans and some liberal economists to scale back the plan, warning of possible inflation stemming from increased federal borrowing.
The legislation would fund measures to combat the pandemic, provide billions of dollars for schools and small businesses, temporarily bolster unemployment benefits, aid state and local governments, and deliver a round of $1,400 direct payments to individuals.
Most of the money is projected to hit the economy over the next year. The budget office estimated that about $1.6 trillion in new spending would occur this fiscal year, which ends September 30, and in the 2022 fiscal year, which begins in October.
The rest of the money will be spent more gradually, the budget office said. Much of the delayed spending comes in the category of education.