The Congressional Budget Office’s (CBO) report on the federal budget for March is out and, unsurprisingly, the red ink is flowing like wine.
But on the upside, it’s slightly less than at the same point last year. On the reality side, the deficit for the first half of the government’s fiscal year was still more than $1.1 trillion.
And as anyone who has followed federal spending trends knows all too well, interest payments on all that debt are rapidly becoming one of the budget’s biggest line items.
According to the CBO, interest payments reached $440 billion in the first half of the fiscal year, eclipsing defense spending ($412 billion) and Medicaid and Medicare spending ($304 and $389 billion, respectively).
Only Social Security, at $711 billion, and the grab-bag “other” category ($631 billion) topped interest payments.
What does this tell us? As the CBO writes, we’ve got a spending problem:
Net outlays for interest on the public debt rose substantially—increasing by $133 billion (or 43 percent)—primarily because interest rates are higher than they were in the first half of fiscal year 2023.
Outlays for the largest mandatory spending programs increased, on net, by $93 billion (or 7 percent)…
And on those programs:
Spending for Social Security benefits rose by $59 billion (or 9 percent) because of increases in the average benefit payment (stemming mostly from cost-of-living adjustments) and because the number of beneficiaries increased.
Medicare outlays increased, on net, by $39 billion (or 10 percent), largely because of increased benefit payments to Medicare Advantage plans.
Medicaid outlays decreased by $5 billion (or 2 percent) as states continue to reassess the eligibility of enrollees who remained in the program for the duration of the coronavirus public health emergency. (The continuous-enrollment requirement ended on March 31, 2023.) CBO expects Medicaid enrollment to fall below 2023 numbers as states continue that process during fiscal year 2024.
Elsewhere in the budget, spending is rising, too – a net increase of six percent in the first half of the fiscal year.
The bottom line for all this: the bills for decades of living well beyond our fiscal means are coming due in the form of higher interest payments. They are no longer theoretical, or limited to some distant, unknowable future.
And yet our political class, and the voters who enable them, continues to pretend there’s nothing to see here.
The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.
Norman Leahy has written about national and Virginia politics for more than 30 years with outlets ranging from The Washington Post to BearingDrift.com. A consulting writer, editor, recovering think tank executive and campaign operative, Norman lives in Virginia.
Norman Leahy has written about national and Virginia politics for more than 30 years with outlets ranging from The Washington Post to BearingDrift.com. A consulting writer, editor, recovering think tank executive and campaign operative, Norman lives in Virginia.
WASHINGTON — A neighbor of Sen. Mitch McConnell says the Kentucky Republican’s Capitol Hill
At American Liberty News, we eschew the mainstream media’s tightly controlled narrative to provide our readers with real news, real insights, and the means to take action. We seek out insightful coverage – and partner with knowledgeable and experienced people and organizations to bring you the information and insight our readers demand.
We humbly seek to provide the tools and information necessary for our readers to decide for themselves what is true and what is right.
Congress Continues To Ignore Looming Fiscal Crisis
The Congressional Budget Office’s (CBO) report on the federal budget for March is out and, unsurprisingly, the red ink is flowing like wine.
But on the upside, it’s slightly less than at the same point last year. On the reality side, the deficit for the first half of the government’s fiscal year was still more than $1.1 trillion.
And as anyone who has followed federal spending trends knows all too well, interest payments on all that debt are rapidly becoming one of the budget’s biggest line items.
According to the CBO, interest payments reached $440 billion in the first half of the fiscal year, eclipsing defense spending ($412 billion) and Medicaid and Medicare spending ($304 and $389 billion, respectively).
Only Social Security, at $711 billion, and the grab-bag “other” category ($631 billion) topped interest payments.
What does this tell us? As the CBO writes, we’ve got a spending problem:
And on those programs:
Elsewhere in the budget, spending is rising, too – a net increase of six percent in the first half of the fiscal year.
The bottom line for all this: the bills for decades of living well beyond our fiscal means are coming due in the form of higher interest payments. They are no longer theoretical, or limited to some distant, unknowable future.
And yet our political class, and the voters who enable them, continues to pretend there’s nothing to see here.
The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.
READ NEXT: Russian Allies Spread Anti-Ukraine Information To Americans
Norman Leahy
Norman Leahy has written about national and Virginia politics for more than 30 years with outlets ranging from The Washington Post to BearingDrift.com. A consulting writer, editor, recovering think tank executive and campaign operative, Norman lives in Virginia.
Norman Leahy
Norman Leahy has written about national and Virginia politics for more than 30 years with outlets ranging from The Washington Post to BearingDrift.com. A consulting writer, editor, recovering think tank executive and campaign operative, Norman lives in Virginia.
Search
follow us
subscribe
TRENDING STORIES
Trump v. Slaughter Restored The Presidency The Constitution Intended
Liberals Will Be Stunned To Learn What The Non-Religious Think About School Prayer
The AI Jobs Apocalypse Just Failed Its First Contact With The Evidence
Small Minds, Small Imagination: Washington’s Height Act Was Never A Cap On National Ambition
SECURITY
Trump Shares Instructions For Military In Event Of His Assassination By Iran
President Donald Trump said he has left instructions for the United States to launch an
Fox’s Kilmeade Says Trump Should Replace Kushner, Witkoff In Iran Talks
Fox News host Brian Kilmeade is urging President Donald Trump to overhaul his negotiating
Trump Declares Iran Ceasefire ‘Over’ After US Strikes 90 Military Targets, Gulf Tensions Explode
WASHINGTON — The three-month ceasefire between the United States and Iran has seemingly collapsed
Report: France And Denmark Were Prepared For ‘Shooting War’ If Trump Moved On Greenland
European leaders privately viewed the United States as a security risk under President Donald
FOREIGN AFFAIRS
Congressman Detained By Armed Israeli Settlers In West Bank Standoff
Rep. Ro Khanna (D-Calif.) says he and a congressional delegation were briefly detained by
Violence Flares Near Historic Christian Community In The West Bank
A Christian advocacy group is sounding the alarm after reporting that a West Bank
Trump Shares Instructions For Military In Event Of His Assassination By Iran
President Donald Trump said he has left instructions for the United States to launch an
Democrat House Candidate Faces Scrutiny Over Undisclosed 16-Day Marriage To Syrian National
A decades-old marriage is suddenly becoming campaign fodder in one of America’s most competitive
BUSINESS & ECONOMICS
Xbox CEO’s Federal Reserve Appointment Sparks Backlash Following Microsoft Layoffs
The Federal Reserve is facing criticism after appointing Xbox CEO Asha Sharma to a
The AI Jobs Apocalypse Just Failed Its First Contact With The Evidence
Imagine a chief executive standing before his investors after a bruising quarter. He overhired
Trump Orders Immediate Halt to Trade With Spain Over NATO Dispute
President Donald Trump dramatically escalated his pressure campaign against NATO allies on Wednesday by
Trump Backs New ‘Freedom Fuel’ Gas Stations
The White House is promoting a new “Freedom Fuel Network” of gas stations offering
HEALTH & SCIENCE
Senator Lindsey Graham Passes Away Suddenly At 71
Sen. Lindsey Graham (R-S.C.) has died at the age of 71 following what his
Texas Gov. Greg Abbott Orders Investigation Into Hospital Over Alleged Birth Tourism Advertising
Texas Gov. Greg Abbott has ordered a state investigation into a South Texas hospital
Bill Archer, Architect Of Landmark GOP Tax Reforms, Dies At 98
Former Rep. Bill Archer, the Texas Republican who chaired the powerful House Ways and
Neighbor Says Mitch McConnell’s Capitol Hill Home Has Been Quiet Since Hospitalization
WASHINGTON — A neighbor of Sen. Mitch McConnell says the Kentucky Republican’s Capitol Hill
At American Liberty News, we eschew the mainstream media’s tightly controlled narrative to provide our readers with real news, real insights, and the means to take action. We seek out insightful coverage – and partner with knowledgeable and experienced people and organizations to bring you the information and insight our readers demand.
We humbly seek to provide the tools and information necessary for our readers to decide for themselves what is true and what is right.
TOP TAGS
TOP CATEGORIES
FEATURES
American Liberty News ©2024
Evolution Digital Media
1900 Reston Metro Plz
Suite 600
Reston, VA 20190