National
Federal Budget Deficit Could Hit $3.7 Trillion This Year
The economic fallout of the coronavirus pandemic could nearly quadruple the federal budget deficit this year, pushing it to a whopping $3.7 trillion, according to a projection released Friday by the Congressional Budget Office.
Last year, with the economy still growing, the deficit surpassed $1 trillion for the first time since 2012 due in large part to Republican tax cuts passed in 2017.
What’s more, the federal debt is projected to be 101% of US GDP by the end of September, the CBO said.
The agency warned that the outlook could be notably different by the end of the year depending on the trajectory of the pandemic.
Congress has already approved four economic stimulus packages since March, spending more than $2 trillion to try to keep the economy afloat by boosting unemployment benefits, expanding lending to small businesses, and sending out stimulus payments directly to American households. Lawmakers approved another $480 billion package this week to help hospitals and small businesses.
The US economy, which has come to a standstill in much of the country, is projected to take a big hit in the second quarter, which covers April to June. During these three months, the CBO expects GDP to decline about 12% and unemployment to rise to 14% — up from 4% in the first quarter. It projected that nearly 27 million fewer people will be employed and that roughly 8 million people will exit the labor force.
American workers have filed 26.5 million initial claims since March 14, according to the seasonally adjusted numbers.
Economic activity is expected to increase during the third quarter as stay-at-home orders are lifted and concerns about the pandemic diminish — but the CBO warns that challenges in the economy and the labor market will “persist for some time.”
Even before the coronavirus outbreak, the federal deficit was projected to keep rising over the coming decade, driving US debt to the highest level since World War II over the next 10 years.
The-CNN-Wire
By: NBC Palm Springs
April 25, 2020
Latest Instagram Posts
Who makes the NBC Top 3, winner will be announced Sunday night on NBC Palm Springs, with the player who makes the number one spot winning a $250 prize from @hondaofthedesert! Comment below if it will 1) Devin Session with the diving TD, 2) Mason Flores with the dot on the run, 3) Reese Johnson with the clutch FG, 4) Kaylaun Smith running over defenders, or 5) Joshua Perez with the TD throw. #hondaofthedesert #fnl #fridaynightlights #fyp #highschoolfootball
🏒🔥 LET’S HEAR FROM TIM O’BRIEN! We’re kicking off Coachella Valley Firebirds Opening Night and catching up with Tim O’Brien! Hear what he has to say as the Firebirds get ready to hit the ice for another exciting season. 🏒🔥 #CoachellaValleyFirebirds #Firebirds #OpeningNight #Hockey #CoachellaValley PalmSprings CVFirebirds
SHARE this reel to help find ‘The Fab 5’ a home! 🐶🤍 #therogginreport #palmsprings #dogrescue #coachellavalley #nbcpalmsprings
🎀 October is Breast Cancer Awareness Month. Take a moment to know the warning signs, schedule your mammogram, and talk with your doctor about the screening schedule that’s right for you. Early detection can make a difference. 💗 #BreastCancerAwareness #BreastCancerAwarenessMonth #Mammogram #EarlyDetection #BreastHealth CoachellaValley DAPHealth
🎬 FREE MOVIE TICKETS! 🍿❤️ Our Manny the Movie Guy is here with a chance to see the upcoming screening of “Love of Your Life” — FREE! 📅 This Tuesday 📍 Mary Pickford Theatre — Cathedral City Want to see the movie before everyone else? Manny has the tickets! 🎟️ Watch for details on how you can enter and score your FREE tickets! #MannyTheMovieGuy #LoveOfYourLife #FreeTickets #MovieScreening #CathedralCity CoachellaValley MaryPickford NBCPalmSprings
🚨 SB 1379 is officially law, separating the Riverside County Sheriffs department and the coroners offices effective July 2027. @maria_nvtv spoke with Sheriff Chad Bianco and a local mom, and both spoke on what this means to them. Be sure to go to nbcpalmsprings.com to see the full report #SB1379 #RiversideCounty #CaliforniaPolitics #ChadBianco #incustodydeaths
It’s time for Season 5!! Fuego stopped by the studio today with a message! Coachella Valley Firebirds season opener this Friday, October 2 at 7 p.m. — tickets at CVFIREBIRDS.COM
Guess we are not the only ones asking about money in the Desert Recreation District! #therogginreport #coachellavalley #localnews #nbcpalmsprings
8 years lated and $30 MILLION higher … Should the state order an independent audit? Drop a 💬 if you want answers! #cvusd #coachellavalley #audit #therogginreport #nbcpalmsprings
Data centers on pause. ✋ Palm Springs City Council unanimously extended it’s moratorium through August 25, 2028, giving the city time to set zoning rules. What do you think of the decision? 🌴