Michael A. Peterson, CEO of the Peter G. Peterson Foundation, commented today on the Biden Administration’s budget proposal for FY2025:

“President Biden’s budget includes $3 trillion in deficit reduction over the next decade, which would be a meaningful step in the right direction but unfortunately not nearly enough to stabilize our fiscal future. Given that we are on pace to borrow $20 trillion over this period, we need to do more to reform the fundamental structural factors that are driving our growing debt.

“Over the next decade, we are on pace to grow our debt to an all-time high as a share of GDP, fueling record interest costs. Meanwhile, critical programs including Social Security and Medicare are in significant danger of automatic cuts for all beneficiaries, and we can’t let that happen. Without action, all Social Security recipients will face a 23% cut in 2033 — that would mean a $17,000 reduction annually for the typical couple. In only 7 years, Medicare faces an 11% cut to providers that would affect more than 77 million enrollees.

“We need our leaders to rise to the urgency of the moment, but legislative gridlock continues to prevent progress on even the basics of budgeting. Late last week, Congress finally approved half of the appropriations bills for the fiscal year that began more than five months ago.

“To break through the dysfunction of our broken budget process, we need a comprehensive and dedicated approach. A bipartisan fiscal commission would allow our leaders to look across the entire budget for spending and revenue solutions that address the true drivers of our debt. More than 8-in-10 Americans agree that a commission would benefit our budget and economy, lower interest costs, make our tax system more fair, and strengthen key programs like Social Security.

“As we move into the heart of a campaign year, Americans wants leaders who can budget responsibly, secure vital programs like Social Security and Medicare, and put us on a stronger and more sustainable path for the future.”

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