You are here
The Latest
NEWS
The Peter G. Peterson Foundation is a nonpartisan, nonprofit organization focused on building a brighter economic future for all Americans. Browse news from the Foundation, and read about our upcoming events.
With the beginning of fiscal year 2024 approaching very soon, lawmakers will need to find a solution to continue funding government activities.
The 12 annual appropriation bills are a key part of the annual budget process that lawmakers must enact to keep the government functioning regularly.
"It’s important that Congress get back to an effective and transparent budgeting process," said Michael A. Peterson, CEO of the Peter G. Peterson Foundation.
At $33 trillion and rising, the national debt threatens America’s economic future. Here are the top ten reasons why the national debt matters.
Although the debt affects each of us, it may be difficult to put such a large number into perspective and fully understand its implications.
"As lawmakers drift from one short-term fiscal crisis to the next, our national debt just keeps piling up, trillion after trillion," said Michael A. Peterson, CEO of the Peter G. Peterson Foundation.
A new poll shows that nine-in-ten Americans want policymakers to work together to avoid a shutdown and focus on implementing solutions to our growing national debt.
“Nobody wins in a government shutdown, especially our economy and the American people,” said Michael A. Peterson.
In around six years, the national debt will likely exceed its all-time high of 106 percent of gross domestic product (GDP), which occurred in 1946.
It may be counterintuitive, but government shutdowns are expensive. They are also bad for the economy.
Public schools for students in kindergarten through 12th grade are financed through a combination of local, state, and federal dollars in proportions that vary across and within states.
This budget explainer describes what Medicaid is, how it is financed, and who benefits from it.
CBO now expects that 3-month interest rates will peak at around 5.3 percent this year and only fall to 3.2 percent by the end of 2025.
Improving our healthcare system to deliver better quality care at lower cost is critically important to our nation’s long-term economic and fiscal well-being.
Rising inflation usually prompts higher interest rates, which in turn boost interest paid on the federal debt and thereby increase annual deficits.
The Children's Health Insurance Program is a key piece of the social safety net and is aiding in the economic recovery.
Fitch Ratings recently downgraded the U.S. long-term credit rating from its top mark of AAA to AA+.
Unless lawmakers act, Social Security beneficiaries could soon see significant cuts in benefits.
Healthcare in the United States is very expensive — but we don’t get what we pay for.
Healthcare spending in the United States is rising, with serious implications for the federal budget.
“Our high and rising national debt is a pressing issue for the future of the nation, and the August recess presents an opportunity for a conversation between lawmakers and constituents about solutions,” said Michael A. Peterson.
Higher short- and long-term Treasury rates mean that the federal government's borrowing costs will also rise.
One of the largest drivers of that rising debt is federal spending on major healthcare programs, such as Medicare and Medicaid.
Interest rates on U.S. Treasury securities have a significant influence on federal borrowing costs.
Over the last four decades, federal grants to state and local governments have made up about 17 percent of their total revenues.
High healthcare spending is not necessarily a bad thing, especially if it leads to better health outcomes. However, that is not the case in the United States.
Social Security is an integral part of the nation’s fiscal picture and a vital economic lifeline for millions of recipients.
The federal government is slated to borrow about $1.5 trillion this year, and that number is projected to nearly double over the next decade.
There are three widely used measures of federal debt. What are the important differences between these measurements?
Despite higher healthcare spending, America’s health outcomes are not any better than those in other developed countries.
Voters are calling on their leaders to take concrete actions to put us on a better fiscal path.
In 2021, health spending in the United States totaled $4.3 trillion and averaged nearly $13,000 per person.
As the largest program in the federal budget, Social Security is a critical part of our nation’s fiscal picture and vital to millions of elderly recipients.
When the US government reaches its debt ceiling, the Treasury can use a variety of accounting maneuvers, known as “extraordinary measures” to keep the federal government from defaulting on its debts.
Many Americans, young and old, may be confused by the complex set of issues that comprise how the government raises revenues and allocates them.
“America’s fiscal outlook is more dangerous and daunting than ever, threatening our economy and the next generation."
Here are six key takeaways from CBO’s latest Long-Term Budget Outlook projections.
“Voters understand the urgency of our fiscal challenges, and that’s why they want lawmakers to take concrete steps to secure our future,” said Michael A. Peterson.
Increasing the debt ceiling allows the Treasury to borrow funds to pay for government obligations that have already been incurred as the result of laws and budgets approved by the President and Congress.
When the debt limit is close to being breached, or when a suspension of the ceiling is nearing, lawmakers would have to act to avoid serious economic and budgetary consequences.
For 2023, the Congressional Budget Office (CBO) estimated in May that the federal budget deficit will total $1.5 trillion.
"As we race past $32 trillion with no end in sight, it’s well past time to address the fundamental drivers of our debt," said Michael A. Peterson, CEO of the Peter G. Peterson Foundation.
According to CBO, provisions in the Fiscal Responsibility Act of 2023 will result in a $1.5 trillion decrease to the deficit over the next 10 years.
If lawmakers do not agree on raising or suspending the debt limit before the extraordinary measures are exhausted, there would be severe consequences.
The country’s fiscal trajectory got notably worse over the past year.
The primary deficit focuses on the difference between government revenues and spending, excluding interest payments. Learn more about the U.S. primary deficit.
Let’s look at the trends in discretionary spending, and how effective they are in reducing the debt.
As part of a potential deal to raise the debt ceiling, policymakers are considering rescinding remaining funding for COVID-19 relief.
“Unfortunately, this bill does little to address our long-term fiscal challenges," said Michael A. Peterson.
Medicaid’s role in state budgets is unique, since the program acts as both an expenditure and the largest source of federal support in state budgets.
The treatment of carried interest continues to be one of the most controversial elements of the U.S. tax code.
Interest costs are on track to become the largest category of spending in the federal budget.
Federal spending for international affairs, which supports American diplomacy and development aid, is a small portion of the U.S. budget.
“As the national debt grows continually while the ceiling deadline inches closer, voters have an unprecedented level of concern about our fiscal outlook,” said Michael A. Peterson.
SNAP is the largest federal program aimed at combating hunger and food insecurity among low-income Americans.
National security is both a vital priority and a significant part of the federal budget.
The Federal Reserve plays an important role in stabilizing the country’s economy.
The Congressional Budget Office (CBO) released updated budget and economic projections, which incorporate the effects of higher interest rates, annual appropriations, and other recent legislative and economic developments.
Programs that millions of Americans depend on and care about may be feeling a squeeze from interest costs on our high and rising national debt.
The recent volatility in interest rates show that breaching the debt ceiling could make federal borrowing much more expensive.
“Today’s CBO report is a timely reminder that as lawmakers work to raise the debt ceiling, they should also address the underlying problem of our rapidly growing national debt."
The nation’s high and rising levels of debt can affect economic growth and pose a number of risks.
Most working Americans are subject to payroll taxes, which are usually deducted automatically from an employee’s paycheck. Employers are also often subject to these types of taxes.
The United States spent $766 billion on national defense during fiscal year (FY) 2022 according to the Office of Management and Budget, which amounted to 12 percent of federal spending.
The depletion dates for Social Security and Medicare’s Trust Funds are rapidly approaching.
“Democratic and Republican voters know that this level of fiscal irresponsibility carries a huge economic risk,” said Michael A. Peterson.
Here’s an overview of inflation, why it matters, and how it’s managed.
The fiscal path of the U.S. government is currently unsustainable because the ratio of debt held by the public as a percent of GDP is rising.
Federal trust funds bear little resemblance to their private-sector counterparts.
Defense spending by the United States accounted for nearly 40 percent of military expenditures by countries around the world in 2022.
“It’s a positive step to see proposals which raise the debt ceiling while also beginning to address our unsustainable fiscal outlook," said Michael A. Peterson.
Social Security is the largest single program in the federal budget and makes up approximately one quarter of total federal spending.
Medicare is an essential health insurance program serving millions of Americans, and a major part of the federal budget and our fiscal outlook.
Projects to address testing, schooling mode impacts, misinformation and vaccine passports will receive $226,536 in research support from Peterson Foundation fund.
Tax expenditures can come in the form of exclusions, exemptions, deductions, and credits.
The percentage of income that Americans pay in taxes can vary widely and depend on many factors.
This piece examines spending on veterans within the budget and outlines the factors that have pushed it higher in recent years.
Many options exist to reduce the imbalance between spending and revenues, including additional taxes on wealthier Americans.
Compared to historical trends and other advanced economies, corporate tax revenues in the United States are low.
Healthcare spending in the United States totaled 18.3 percent of gross domestic product (GDP) in 2021.
Presently, revenues raised by the corporate income tax represent the third-largest category of federal tax revenue in the United States, trailing those generated from the individual income and payroll taxes.
The United States has one of the most expensive health systems in the world.
Without reform, Medicare spending will continue to rise over the coming years — threatening the HI Trust Fund and placing immense pressure on the federal budget.
“These new Trustee reports make clear that when it comes to the future of Social Security and Medicare, doing nothing is simply not an option," said Michael A. Peterson.
Without reform, the Social Security Trust Funds will soon be depleted and unable to pay full benefits.
Today, the Social Security and Medicare Trustees released their annual reports on the programs’ financing, showing that the future of these vital programs remain at risk.
“Voters understand that making progress on our national debt would help their economic prospects,” said Michael A. Peterson, CEO of the Peterson Foundation.
One issue that most lawmakers and voters agree on is that our tax system needs reform.
Healthcare costs are notoriously high in the United States, and the price of prescription drugs is a big reason why.
The Medicare Advantage allows beneficiaries enrolled in both Part A and Part B to receive benefits from private plans.
Here are the top ten spending categories for the federal budget.
The fairness of our federal tax system is a hotly debated issue. Too often, however, those debates confuse or misrepresent important facts because they focus on one type of tax in isolation rather than the various taxes that people face in aggregate.
Here we analyze the extent to which more funding impacts tax compliance, the tax gap, and federal revenues.
“It’s critical that budget proposals fully address the structural drivers of our debt in order to stabilize it over the long run," said Michael A. Peterson, CEO of the Peter G. Peterson Foundation.
The Biden Administration released its budget for FY 2024, calling for a reduction in federal deficits by $2.9 trillion over the next decade.
Tax breaks totaled over $1.7 trillion in 2022. To put that in perspective, that’s more than the government spends on Social Security, defense, or Medicare.
Responsible fiscal policy can play an important complementary role to monetary policy in helping to moderate inflation.
Earlier this year, the United States once again hit its debt ceiling, which is currently capped at $31.4 trillion.
“CBO’s latest report shows just how vulnerable we are to rising interest rates, and voters are paying attention,” said Michael A. Peterson, CEO of the Peterson Foundation.
Although the need for serious, long-term changes to the funding structure of the Highway Trust Fund is clear, there is disagreement over the approach to do so.
According to the official poverty measure of the U.S. Census Bureau, 37.9 million people lived in poverty in 2021.
The words debt and deficit come up frequently in debates about the policy decisions that lawmakers face. The two concepts are similar, but are often confused.
Healthcare spending is a critically important part of the American economy and the federal budget.
Borrowing costs have increased rapidly over the past year and will grow through the next decade.
“Interest costs are skyrocketing to record levels, damaging our nation’s budget, economy and future," said Michael A. Peterson, CEO of the Peter G. Peterson Foundation.
CUTGO is short for “cut-as-you-go,” and it is an internal rule used by the House of Representatives, meaning that it does not apply to consideration of legislation in the Senate.
With the national debt surpassing $31 trillion, the next generation of American leaders is making its voice heard.
Interest costs on the national debt are expected to rapidly outstrip spending on children in coming years.
Cracking down on the tax gap would not only introduce more fairness into the system, but it could be a big help for our nation’s fiscal imbalance — to the tune of hundreds of billions of dollars every year.
There have been a number of proposals to increase, eliminate, or otherwise adjust the payroll tax cap as a way to shore up Social Security’s finances.
“With interest on the debt rising to more than $1 billion a day, voters know our fiscal condition is simply not sustainable,” said Michael A. Peterson, CEO of the Peterson Foundation.
There’s no doubt America’s fiscal problems are serious and significant, but CBO’s assortment of options offers lawmakers a deep playbook of spending and revenue changes that would put us on a better path.
Eight new essays bring practical advice for congress and the administration to address America’s most pressing fiscal and economic challenges.
“Across party lines, vast majorities of voters believe that divided government brings an important responsibility for our leaders to work together to secure our fiscal future,” said Michael A. Peterson, CEO of the Peterson Foundation.
A continuing resolution is a temporary funding measure that Congress can use to fund the federal government for a limited amount of time.
