November 18, 2021
Three Key Takeaways from the CBO Cost Estimate of the Build Back Better Act
The Congressional Budget Office (CBO) released its long-awaited cost estimate for the Build Back Better Act (BBBA). In a new insight, Director of Fiscal Policy Gordon Gray walks through the BBBA’s effects. He notes that over the long term, the deficit effects are likely understated, as the bill relies on temporary spending policy and permanent savings to mask the true cost of the policies.
- The CBO estimate concludes that contrary to advocates’ claims, the BBBA is not fully paid for and would add $367 billion to the national debt.
- The upfront nature of the spending means that there will be a substantial fiscal pulse of $792 billion in the first 5 years, exacerbating inflationary pressures.
- If fully implemented, the cost of the bill could exceed the offsets by nearly $3 trillion.