US deficit climbs 562% thanks to Biden’s student debt cancellation
Monthly federal budget deficit up 562% from September last year, Treasury Department says The figures released on Friday, largely due to President Joe Biden’s student debt cancellation plan.
The deficit specifically jumped in the last month of fiscal 2022, the Associated Press reporteddue to Biden’s plan to cancel student loans for millions of Americans, what Penn Wharton’s model budget plans will cost taxpayers over $1 trillion.
Biden Friday rented his administration for reducing the total deficit to $1.4 trillion since last year, although the Congressional Budget Office assigned the decrease to the end of pandemic-era spending and an increase in income taxes. Biden continues to claim ‘our economy is strong as hell’ as inflation soars and a recession looms.
“The entire decline in the deficit between 2021 and 2022 can be attributed to the expiration of temporary COVID relief, not a new era of fiscal responsibility,” said Maya MacGuineas, chair of the Committee for a Budget. responsible federal government, in a statement Friday. “In fact, the deficit would have been nearly $400 billion lower had the Biden administration not decided to enact an inflationary, costly and regressive student debt cancellation plan in August.”