Return Discretionary Spending to Pre ‐​Pandemic Levels

Romina BocciaAfter this week ’s election, members of Congress will return to Washington for a lame-duck session during which they will confront a “must‐​pass” deadline of their own making. Lawmakers will need to address theDecember 16th expiration of discretionary appropriations or federal government operations will partially shut down.They have two main choices: adopt a continuing resolution to extend federal funding at current levels into early 2023 or adopt a massive new spending bill. Extending the continuing resolution into 2023 offers lawmakers the best chance to take another crack at putting discretionary spending on a more responsible path.A more responsible approach would return discretionary spending to pre-pandemic (2019) levels (see the chart below for historic spending and a selection of possible spending projections). Lawmakers running up emergency deficit spending at the height of the COVID-19 pandemic should not establish a higher spending baseline for years to come. As pandemic needs wind down, so should government spending.Compared to assumptions by the Congressional Budget Office, a return to pre-pandemic discretionary spending (after adjusting for inflation) would save American taxpayers $4.8 trillion over the next 10 years (assuming an annual growth rate of 2 percent). More modest scenarios would freeze discretionary spending at current levels (saving $3 trillion over 10 years) or grow discretionary spending at no more than 2 percent based on cu...

Source: Cato-at-liberty - November 9, 2022 Category: American Health Authors: Romina Boccia Source Type: blogs