More red ink: Congressional budget agency projects bigger deficits as debt talks continue

By FATIMA HUSSEIN
Associated Press

WASHINGTON (AP) — The Congressional Budget Office says this year’s projected federal budget deficit has jumped by $130 billion. That’s due in part to a proposed change to student loan repayment plans and a series of bank rescues. Overall, the agency expects deficits to increase by $20 trillion in the 2024 to 2033 period, with a caveat that their projections are “subject to a great deal of uncertainty.” The updated 10-year projection comes as President Joe Biden and congressional leaders try to break an impasse on raising the government’s debt limit. Democrats and Republicans have disagreed on whether and how to raise the ceiling.