Press Releases

Looking ahead to this week's G-20 Summit in Pittsburgh, among the critical issues will be how the U.S. and its G-20 partners must put their fiscal houses in order and their budgets on a sustainable path over the next decade before the Baby Boom retirement tsunami hits full force.

Last week, the Congressional Budget Office (CBO) released its Long-Term Budget Outlook. The reports suggests a brief window in which deficits subside a bit, after which the effects of health care cost growth and population aging will drive them rapidly upward and bring the national debt to unprecedented and intolerable levels.

Washington D.C.—Today, the Congressional Budget Office released its Long-Term Budget Outlook, with tax and spending projections over a 75-year window that are considerably worse than previous projections.  As with previous reports, CBO concludes the federal budget is on an unsustainable path, with ever-rising debt reaching untenable levels.

Washington, D.C.—As the Federal Open Market Committee (FOMC) meets today and tomorrow to discuss its semi-annual monetary policy outlook, the Fiscal Roadmap Project of the Committee for a Responsible Federal Budget is releasing a comprehensive paper on the Fed's actions to address the financial and economic crisis.

Given the precarious fiscal position of the country, it is critical that any efforts to reform the nation's health care system are fiscally responsible. Accordingly, the Committee for a Responsible Federal Budget has developed a list of principles for enacting reform: 1) Health Care Reform Should Focus on Slowing Cost Growth 2) New Government Health Care Spending Should be Fully Offset 3) Government Health Care Programs Must be Made Sustainable 4) The Need to Reform Health Care Does Not Displace the Need… more

Reviewing the House Appropriations Allocations   The congressional budget process stipulates that the Congress votes on the total level of discretionary spending each year, and that the Appropriations Committees determine the distribution of that total. With the FY2010 budget resolution passing in April—setting discretionary spending limits somewhat below the President's request—the House Appropriations Committee moved on to adopt its suballocations last week. 

Washington, DC -- Today, in an address to the American Medical Association, President Obama made the case for health care reform focused on bringing down long-term costs. He also pledged that his plan to expand insurance coverage would be deficit neutral over the next decade, and outlined some of the $948 billion in savings he has proposed to finance his health care reform - including the $313 billion announced this weekend.

Slowing the growth of health care costs must be the central focus on any health care reform plan. Rapidly growing costs not only squeeze the federal budget, but put pressure on the budgets of families, businesses, and states as well, all of which contribute to the growing rolls of the uninsured.

Washington, D.C. -- Today, the Obama administration released the "Terminations, Reductions and Savings" part of its FY2010 budget.      This release shows that the President intends to cut or reduce 121 programs for a total savings of around $17 billion in FY2010.   The Committee for a Responsible Federal Budget (CRFB) welcomes the President's effort to find savings and improve the efficiency of government, and encourages President Obama to go further in addressing long-term spending growth.  

Washington, DC -- As the United States approaches "Tax Day" this Wednesday, the Committee for a Responsible Federal Budget (CRFB) urges politicians to begin thinking about comprehensive and fundamental tax reform.

On yesterday's edition of Face the Nation, host Bob Schieffer questioned Treasury Secretary Tim Geithner about the TARP program, and cited CRFB's tally from its "Stimulus Watch" project, saying there were just $32 billion dollars remaining from the original $700 billion in TARP funds:

Over the last two weeks, The Committee for a Responsible Federal Budget (CRFB) has looked at a number of important budgetary issues related to the economic crisis, the budget process, and the long-term fiscal situation. Our work, includes:

Yesterday, the White House announced the establishment of a Task Force on Tax Reform that will report reform options to the President by the end of the year. The Task Force will be charged with making recommendations on simplifying the tax code, cutting corporate welfare, and reducing tax loopholes and evasion. The Committee for a Responsible Federal Budget is encouraged by the formation of this Task Force, and counsels it to focus on broad and fundamental tax reform.

Washington, DC -- Last week, the Congressional Budget Office (CBO) released its Preliminary Analysis of the President's Budget. The Committee for a Responsible Federal Budget has warned that the President's budget is not aggressive enough in reducing the medium or long-term deficit, and CBO's analysis projects a significantly worse situation than the Administration does, with the President's Budget plan resulting in larger and continuously rising budget deficits.

Washington, D.C. -- As policymakers begin to consider an overhaul of the U.S. health care system, the Committee for a Responsible Federal Budget (CRFB) strongly urges that Congress adhere to pay-as-you-go (PAYGO) budgeting rules. All new health care spending should be offset both within a ten-year window and beyond. Health care costs represent the single largest threat for the budget-increasing the government's unfunded health care liabilities would be a move in the wrong direction.

In our previous release (President Obama's FY2010 Budget), we discussed the broad fiscal impact of the FY2010 Budget Blueprint. We commended the President for having a specific fiscal goal, honestly budgeting for expected costs, and for providing offsets for many of the new policies he supports. However, we expressed strong concern that the budget included items in the baseline (such as AMT patches, Medicare patches, and the renewal of the 2001 and 2003 tax cuts), as a way to avoid paying for

Today, the White House released an outline of its FY2010 budget. Although the President is ordinarily required to submit his budget request to Congress on the first Monday in February, new Presidents are typically given additional time. A more comprehensive budget will be released this spring. Main Points:

WASHINGTON, DC -- The House and Senate will soon consider a $410 billion omnibus spending bill that combines the nine annual appropriation bills that were left over from last year. 

WASHINGTON, D.C. -- President Barack Obama is set to deliver a speech to the nation this evening to lay out his economic recovery plans and discuss the challenges ahead in trying to pull the nation out of a severe recession. The President's address comes on the same day as Federal Reserve Chair Ben Bernanke testifying before the U.S. Senate Banking Committee about the state of our nation's banks. The President is also expected to discuss healthcare and America's foreign policy.

Washington, DC -- The new Administration will be releasing the broad outlines of its first budget on Thursday. This FY 2010 budget will be a critically important document in that it is the Obama Administration's first opportunity to lay out a specific vision of what policy choices they would like to implement and what fiscal goals they would like to achieve.  Given the dramatic deterioration in the economy and financial sector, their policy agenda will and should have changed dramatically since the presidential campaign.[1]

Washington, DC -- Today, President Obama signed into law the American Recovery and Reinvestment Act of 2009. This stimulus bill represents the latest and largest effort by the federal government to boost the deteriorating economy. (For details of all efforts to date, see www.usbudgetwatch.org/stimulus).

WASHINGTON, D.C. - According to a new Congressional Budget Office (CBO) report, less than half of the discretionary spending provided in the original version of the House stimulus bill will actually be spent before the end of fiscal year 2010.  CBO estimates that of the $355 billion available, approximately $136 billion would actually be spent in the first two years.  CBO and other economists project that by the time the remainder is spent, the recession will be over. 

Washington, D.C. -- In his speech today, President-elect Obama argued for a large stimulus package and called for bipartisanship and transparency in the process.

WASHINGTON, D.C. -- The Congressional Budget Office (CBO) released its new baseline projections today, showing a deficit of $1.2 trillion in 2009, and $700 billion in 2010.  

WASHINGTON, D.C. -- The Committee for a Responsible Federal Budget (CRFB) expressed support today for the pay-as-you-go (PAYGO) rule offered as part of the House rules package and called on both houses of Congress to abide by PAYGO principles.  CRFB objected to another part of the package, which removes the Medicare trigger designed to control Medicare costs.

WASHINGTON, D.C. -- Today the Congressional Budget Office (CBO) released two health care reports, one focusing on large-scale proposals for reforming the health care system, and the other on specific health care-related budget options the federal government can undertake.

The reports project that federal spending on Medicare and Medicaid will roughly double in the next decade, from $720 billion in 2009 to $1.4 trillion in 2019; and will grow as a share of gross domestic product from about 4 percent… more

WASHINGTON, D.C. -  In the Monthly Treasury Statement of Receipts and Outlays of the U.S. Government, the Treasury Department estimated that the first two months of fiscal year 2009 recorded a deficit of $401 billion.  This two-month deficit will be almost as large as the entire 2008 deficit of $455 billion, with the current deficit representing a post-war record for a two month period.  The Treasury recorded the deficit in November as $164 billion and $237 billion in October.  more

WASHINGTON, D.C. - Over the last few days, Senator Obama has announced much of his economic team, called on the Congress to pass a large stimulus bill and vowed to root out waste and inefficiencies in the budget as President. The Committee for a Responsible Federal Budget (CRFB) congratulates President-elect Obama for selecting outstanding economic talent and commends his continuing focus on stabilizing the economy and finding savings in the federal budget.

The Committee for a Responsible Federal Budget (CRFB) reiterated its suggestion that any stimulus package include a credible mechanism to ensure that the country pay back the massive debt we are accumulating after the economy recovers. "The United States is going to have to engage in never before seen levels of borrowing-there is no way around that," explained Maya MacGuineas, President of CRFB. "If we don't show our lenders that we are serious about repaying this debt, though, borrowing will become increasingly difficult and expensive." more

Today the Committee for a Responsible Federal Budget released an analysis projecting a deficit of over one trillion dollars for fiscal year 2009. This deficit would be more than twice as large as the 2008 deficit of $455 billion and would represent a post-war record both in nominal terms and as a share of GDP, CRFB said.

In a separate release, the Committee offered its take on fiscal stimulus, putting forth three principles under which any stimulus package should be passed:

Stimulus… more

Washington, D.C. -- The Senate legislation designed to stabilize financial markets included a number of extraneous items, including $150 billion in new tax breaks. The tax breaks, which were added to this version of the bill to encourage its passage, include an AMT patch along with the renewal of several individual and business tax credits. The Committee for a Responsible Federal Budget urges Congress to consider these tax… more

With an agreement reached on a $700 billion financial bailout package, the Committee for Responsible Federal Budget (CRFB) urges lawmakers to turn their attention to how to pay for it.

"Years of borrowing have already left the U.S. government in a weakened state," said Maya MacGuineas, CRFB president. "Lawmakers need to behave responsibly and figure out how to pay for this package… more

Testifying on budget process reform yesterday on behalf of the Committee for a Responsible Federal Budget before the House Budget Committee, CRFB President Maya MacGuineas presented an idea to use any and all future revenues recouped from the bailout package only for paying down the government debt. Mrs. MacGuineas also urged lawmakers to use this crisis as an opportunity to come together… more

This weekend, Treasury Secretary Henry Paulson announced a $700 billion plan for the federal government to buy distressed mortgage-related assets to stabilize financial markets. Although it is not yet clear how this will be counted in the budget, since the government could redeem them for real money in the future, it is likely to greatly increase the budget deficit. "This… more

WASHINGTON, D.C. - This week the Senate will be considering a large tax bill to create new energy tax incentives, extend a number of expiring tax breaks, offer hurricane disaster relief, and "patch" the alternative minimum tax (AMT) for another year. In its current form, the $18 billion in energy tax credits would be fully paid for, roughly $25 billion in revenue-raisers would be… more

Last night at the Republican National Convention, Senator John McCain proposed between $524 billion and $563 billion in annual spending increases and tax cuts, according to a new analysis by the Committee for a Responsible Federal Budget.

The policies discussed by Senator McCain included:

Keeping taxes low (by making permanent nearly all of the 2001 and 2003 tax cuts and indexing the AMT patch) for $391 billion in 2013. Cutting corporate tax rates for between $55 billion and $68 billion in 2013. Reforming the health… more

Last night at the Democratic Convention, Senator Barack Obama proposed $547 billion in annual spending increases and tax cuts, according to a new analysis by the Committee for a Responsible Federal Budget. The policies discussed by Senator Obama included:

Cutting taxes for 95% of all working families (renewal of the 2001 and 2003 tax cuts for families making under $250,000 a year; a $500 per person "Making Work Pay" tax credit; and a number of other policies for low-income workers, savers, homeowners, and middle-class taxpayers) for… more

Last night at the Democratic Convention, Senator Barack Obama proposed $547 billion in annual spending increases and tax cuts, according to a new analysis by the Committee for a Responsible Federal Budget.

The policies discussed by Senator Obama included:

Cutting taxes for 95% of all working families (renewal of the 2001 and 2003 tax cuts for families making under $250,000 a year; a $500 per person "Making Work Pay" tax credit; and a number of other policies for low-income workers, savers,… more

Today the Committee for a Responsible Federal Budget released Promises, Promises: A Fiscal Voter Guide to the 2008 Election, which analyzes the details and costs of the two major presidential candidates' fiscal policies.

This and other reports focusing on fiscal policy and the 2008 presidential election can be found at www.USBudgetWatch.org.

Washington, DC – The Committee for a Responsible Federal Budget, a bipartisan group of some of the most highly respected budget experts in the United States that includes former directors of the Office of Management and Budget, Congressional Budget Office, and Government Accountability Office, as well as many former members of Congress, today launched US Budget Watch, a critically important new effort to force the 2008 presidential candidates to pay attention to the deteriorating federal budget situation.

US… more

Congress appears poised to move forward with a fiscal stimulus package. In theory, a mixture of monetary and fiscal policy is generally most appropriate to help a slowing economy; in practice however, fiscal policy becomes politicized so easily that it is often ineffective, and is sometimes even counterproductive. Too often in the past, stimulus bills have been poorly timed, poorly targeted, and larded up with unrelated items.

If Congress moves forward with a stimulus package, the Committee for Responsible Federal… more

This morning, the Congressional Budget Office released its annual Long-Term Budget Outlook, which paints a grim picture of the nation’s long-term fiscal situation.  Among its predictions are that, under current law, spending will increase from 20% of GDP to 44% in 2082, while revenues will increase to 26% of GDP, leaving an unsustainable fiscal gap and reflecting a tremendous growth in the size of government. 

The growing fiscal gap is driven primarily by rapidly increasing healthcare costs and an aging… more

Today, Leon Panetta, Co-Chair of the Committee for a Responsible Federal Budget and former White House Chief of Staff under President Bill Clinton, testified before the Senate Budget Committee on Senators Kent Conrad (D-ND) and Judd Gregg’s (R-NH) proposal to form a Bipartisan Task Force on Responsible Fiscal Action. Panetta warned that “Our children are facing a reduced standard of living. We cannot invest in their future by borrowing from their future.”

The task force would be made up of… more

The Committee for a Responsible Federal Budget joined with the Center on Budget and Policy Priorities, CED, and The Concord Coalition to release this joint statement today.

The four organizations joining in this statement have come together on a number of occasions in the past to express their concern about the threat that chronic deficits pose, and their support for Pay-As-You-Go rules (PAYGO) to help prevent the deficit situation from becoming worse. (See, for example, the statement of March 21,… more

Today, the Committee for a Responsible Federal Budget welcomed the announcement of a third consecutive annual decline in budget deficits, but warned that the nation’s long-term fiscal outlook remains grim.

At a press conference this afternoon, President Bush announced that the deficit for 2007 was $163 billion, down from $248 billion in 2006.  As a result of economic growth and spending constraints in Congress, the deficit is now just 1.2 percent of GDP, the lowest ratio since 2001.

“Any reduction in… more

WASHINGTON, D.C. – Today, the Committee for a Responsible Federal Budget applauded the effort by Congressmen Wolf (R-VA) and Cooper (D-TN) to form a commission to reform tax and entitlement policies.

“The Committee for a Responsible Federal Budget supports efforts to deal responsibly with the country’s fiscal challenges, and we particularly support those that rely on bipartisan cooperation, which will ultimately be necessary to make real progress,” said Maya MacGuineas, President of the Committee for a Responsible Federal Budget. “The… more