The federal deficit for 2020 is believed to have hit a record-smashing $3.1 trillion in 2020, well over double the highest deficit on record, according to an estimate by the Congressional Budget Office released Thursday.

The official figures from the Treasury Department are expected later this month.

Even before the pandemic, the deficit was on track to exceed $1 trillion for the only time since the four-year period following the Great Recession. The fiscal response to that economic downturn led to the previous record deficit of $1.4 trillion in 2009, but that number steadily declined until the mid-2010s.

Since President TrumpDonald John TrumpFive takeaways from the vice presidential debate Harris accuses Trump of promoting voter suppression Pence targets Biden over ISIS hostages, brings family of executed aid worker to debate MORE took office, the deficit has grown dramatically on the back of unfunded tax cuts and increased spending on

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Sept. 22 (UPI) — The United States will need to cut spending by at least $900 billion per year over the next few decades to restore the national deficit to its 2019 level, according to a report by the Congressional Budget Office.

Otherwise, the debt could reach never-before-seen highs.

The 2020 Long-term Budget Outlook, released Monday, said the U.S. government will need to increase revenue and cut non-interest spending to make up about 3.6% of the gross domestic product each year from 2025 to 2050. That would reduce the debt to 79% of the GDP by 2050, the same share it was in 2019.

With the economic fallout caused by the COVID-19 pandemic, the CBO projects the United States will have a deficit of 98% of the GDP by the end of 2020 — up from about 35% in 2007, before the last recession.

The government would have to reduce

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Nancy Pelosi wearing a suit and tie: On The Money: Shutdown clash looms after Democrats unveil spending bill | CBO: $900B a year needed to stabilize post-crisis debt | Airline CEOs plead with Washington as layoffs loom

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On The Money: Shutdown clash looms after Democrats unveil spending bill | CBO: $900B a year needed to stabilize post-crisis debt | Airline CEOs plead with Washington as layoffs loom

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THE BIG DEAL-Shutdown clash looms after Democrats unveil spending bill: Legislation introduced Monday by House Democrats to keep the federal government funded through Dec. 11 quickly ran into opposition from Senate Republicans, raising the odds of a shutdown

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The first round of bills passed by Congress this year to combat the coronavirus pandemic, including the CARES Act and the extension of a small business forgivable loan program, will boost U.S. economic growth by 4.7% , the Congressional Budget Office said Friday.


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In an analysis released Friday, the non-partisan federal agency that provides financial and economic advice to Congress said the first four bills passed with near-unanimous support will also add about 3.1% to the size of gross domestic product in 2021. The cost for this fiscal stimulus: almost $2.9 trillion over two years, CBO said.

The report comes as Congress and the White House are struggling to agree on another coronavirus aid deal before lawmakers hit the road in October for the fall election campaigns. A large gap between Republican and Democratic offers and increasing confidence the economy is improving have left prospects for a deal

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  • The Congressional Budget Office projects the amount of debt held by the federal government will soon rival the size of the entire US economy.
  • It’s a level not reached since the end of World War II.
  • Most experts say the US should spend what it takes to thwart the coronavirus and reduce economic pain for jobless people.
  • Visit Business Insider’s homepage for more stories.

The amount of debt held by the US government will soon nearly equal the size of the entire economy, the nonpartisan Congressional Budget Office projected on Wednesday.

It’s set to be the highest level since the end of World War II after the government ramps up its spending to battle the coronavirus pandemic. The agency estimated that the amount of debt the US owes would amount to 98% of its gross domestic product by the end of 2020. Next year, it would surpass the economy’s size.

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