In a new insight, Director of Fiscal Policy Jordan Haring walks through the Congressional Budget Office’s (CBO) recently released estimate of President Biden’s fiscal year (FY) 2025 budget, which uses its own assumptions to evaluate the budget’s policy proposals.

Key points:

• CBO’s estimate of the president’s budget does not score all of the policy proposals in the budget; as a result, CBO does not provide projections of total spending, revenue, deficits, and debt under the president’s budget relative to its most recent 10-year baseline.
• The proposals CBO was able to analyze would reduce budget deficits by $1.4 trillion over the FY 2025–2035 budget window relative to its baseline; this is the net effect of $2.6 trillion of gross costs and $4.0 trillion of gross savings.
• CBO’s estimated $1.4 trillion of 10-year net deficit reduction is $1.0 trillion less than the $2.4 trillion of deficit reduction the Office of Management and Budget (OMB) estimates for the same set of policy proposals.

Read the analysis