Staff Reports
Joe Biden’s executive actions to cancel student loan debt are sending the federal deficit into orbit, rocketing the projected 2024 shortfall up by $400 billion. The Congressional Budget Office (CBO) dropped this bombshell on Tuesday with a revised estimate that sees the deficit ballooning to a staggering $1.9 trillion, leaving taxpayers scratching their heads and wondering who will foot the bill.
Apparently, Biden’s bailout bazooka is pricier than previously thought. The cost of his student loan cancellation plan has soared to $145 billion more than initially estimated. The CBO, not known for sugar-coating, hinted that this projection might still be shy by about $66 billion if a new rule from the Biden administration secures the needed grip by the fiscal year-end. If that miscalculation holds, American citizens could be staring down the barrel of a $211 billion fiscal fiasco for just one year.
Biden's Student Debt Cancellation a Main Cause of $400B Increase in '24 Deficit. Is anyone actually surprised by this??? https://t.co/loLg0ENhDt
— Michelle Maxwell (@MichelleMaxwell) June 21, 2024
Adding to the spectacle, the Supreme Court previously put the kibosh on Biden’s grandiose student loan forgiveness scheme, ruling that he overstepped his executive boundaries. Based on some ancient language from the HEROES Act of 2003, Biden tried to magically erase $430 billion in loans, but the court wasn’t buying it. The justices emphasized that such titanic decisions must be made by Congress, not conjured up through executive tricks.
But don’t be fooled into thinking student loans are the sole culprit behind the deficit debacle. Other culprits include the $95 billion defense appropriations for geopolitical skirmishes and military enhancements, $70 billion in banking crash cleanups, and billions more drained by higher-than-expected Medicaid costs and discretionary spending spree.
And let’s not overlook the mountain of debt interest payments, threatening to eclipse $1 trillion by 2026. According to the Committee for a Responsible Federal Budget, interest payments this year alone are set to outstrip the Defense Department’s budget, shooting down any pretense of fiscal prudence.
While Biden and the Democrats binge-spent on the so-called American Rescue Plan, infrastructure bills, and a mislabeled Inflation Reduction Act, it’s clear spending is way out of whack with revenue. All this while the administration’s spending sprees make high-taxing countries look like penny pinchers in comparison. Enough is enough; it’s time for Washington to cut up the credit card, end the liberal spending binges, and restore some fiscal sanity. Time to tighten the belt folks—because under Biden, America’s wallet is looking emptier by the hour.
