Aug 21, 2019

U.S. budget deficit set to hit $1 trillion 2 years earlier than expected

Photo: Rarrarorro/Getty Images

A new report from the Congressional Budget Office shows that the U.S. budget deficit is expected to breach $1 trillion by 2020, two years earlier than previously projected.

The big picture: The growing deficit has been driven by President Trump's tax cuts, increased government spending and rising health care costs. The shortfall is expected to be widened by the recent budget deal reached by Trump and Congress to lift spending caps by $320 billion, as well as the emergency spending package that Congress passed to help manage the migrant crisis at the U.S.-Mexico border, the Washington Post reports.

By the numbers: The U.S. budget deficit is expected to hit $960 billion this year and reach a $1.2 trillion average per year between 2020 and 2029.

  • The deficit projection for 2019 is up $63 billion from the CBO's last report in May.
  • The CBO says Trump's tariffs have affected business investment and are expected to make gross domestic product 0.3% smaller by 2020 than it otherwise would have been. Additional tariffs could curb growth even further.
  • Trump's trade wars are projected to reduce average income by $580 per U.S. household, The Hill reports.

Of note: CBO director Phillip Swagel told CNBC the deficit is expected to be even more strained after 2029, as a boom in aging population, increased interest costs and health care spending will have taken its toll.

Between the lines: Axios' Jim VandeHei notes that Trump "promised in a 2016 interview, with the WashPost's Bob Woodward and Robert Costa, to wipe out the national debt in eight years. Instead, he's increased the deficit and inflated the debt by trillions."

Go deeper ... Chart: How the U.S. budget deficit has fluctuated since the 1980s

Editor's note: The attribution for the last quote was corrected, to show it was written by Jim VandeHei.

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Trump slams Dems as GOP sues California over mail-out ballot plan

California Gov. Gavin Newsom during a February news conference in Sacramento, California. Photo: Justin Sullivan/Getty Images

President Trump accused Democrats of trying "Rig" November's general election as Republican groups filed a lawsuit against California Sunday in an attempt to stop Gov. Gavin Newsom (D) from mailing ballots to all registered voters.

Driving the news: Newsom signed an executive order this month in response to the coronavirus pandemic ensuring that all registered voters in the state receive a mail-in ballot.

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 7 p.m. ET: 5,383,582 — Total deaths: 344,077 — Total recoveries — 2,158,031Map.
  2. U.S.: Total confirmed cases as of 7 p.m. ET: 1,640,972 — Total deaths: 97,679 — Total recoveries: 366,736 — Total tested: 14,163,195Map.
  3. World: White House announces travel restrictions on Brazil, coronavirus hotspot in Southern Hemisphere Over 100 coronavirus cases in Germany tied to single day of church services — Boris Johnson backs top aide amid reports that he broke U.K. lockdown while exhibiting symptoms.
  4. Public health: Officials are urging Americans to wear masks headed into Memorial Day weekend Report finds "little evidence" coronavirus under control in most statesHurricanes, wildfires, the flu could strain COVID-19 response
  5. Economy: White House economic adviser Kevin Hassett says it's possible the unemployment rate could still be in double digits by November's election — Public employees brace for layoffs.
  6. Federal government: Trump attacks a Columbia University study that suggests earlier lockdown could have saved 36,000 American lives.
  7. What should I do? Hydroxychloroquine questions answeredTraveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

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Updated 2 hours ago - Politics & Policy

Federal judge strikes down Florida law requiring felons to pay fines before voting

Gov. Ron DeSantis. Photo: oe Raedle/Getty Images

A federal judge on Sunday ruled that a Florida law requiring convicted felons to pay all court fines and fees before registering to vote is unconstitutional.

Why it matters: The ruling, which will likely be appealed by state Republicans, would clear the way for hundreds of thousands of ex-felons in Florida to register to vote ahead of November's election.