CBO Blog


CBO Releases New Report: Statement for the Record on the Status of the Highway Trust Fund
Presentation on Innovation Policy April 23, 2013 I spoke this afternoon at a conference on "Innovation Policy and the Economy organized by the National Bureau of Economic Research. My presentation (show below) explored a wide array of possible changes in federal policy that might bolster innovation, including more spending on research and development, increased support for education, lower taxes on private investment, greater immigration of skilled workers, patent reform, and adjustments to regulatory policies.
CBO To Release Analysis of the President’s FY 2014 Budget and Updated Baseline Projections in May April 22, 2013 As it does each year, CBO, in conjunction with the staff of the Joint Committee on Taxation (JCT), will analyze the President's proposed budget—in this case the FY 2014 Budget—projecting the revenues that will be collected and the spending that will occur over the next 10 years if the President's proposals are adopted. That analysis will incorporate CBO's most recent economic forecast, which was released in February, its projections of how various programs will operate under current law, and its estimates of the budgetary impact of proposed policy changes.
How Does Growth in the Cost of Goods and Services for the Elderly Compare to That for the Overall Population? April 19, 2013 As discussed in earlier blog posts, our colleague Jeffrey Kling testified yesterday about changing the measure used to index Social Security, other federal programs, and the tax code for inflation. Currently, the tax code and many federal spending programs are indexed to one of two versions of the consumer price index (CPI): the consumer price index for all urban consumers (CPI-U) or the consumer price index for urban wage earners and clerical workers (CPI-W).
Differences Between the Traditional CPI and the Chained CPI April 19, 2013 Yesterday my colleague Jeffrey Kling testified about issues related to indexing Social Security, other federal programs, and the tax code for inflation. In this post I discuss differences between the traditional consumer price index (CPI) and an alternative index, the chained CPI, that were covered in that testimony.
CBO Testifies on Using the Chained CPI to Index Social Security, Other Federal Programs, and the Tax Code for Inflation April 18, 2013 This morning I testified—before the Subcommittee on Social Security of the House Committee on Ways and Means—on changing the measure of inflation used for indexing Social Security, other programs, and the tax code. My testimony updates a CBO report from 2010 on the same topic.
What Would Be the Effect on the Deficit of Using the Chained CPI to Index Benefit Programs and the Tax Code? April 18, 2013 This morning my colleague Jeffrey Kling testified before the Subcommittee on Social Security of the House Committee on Ways and Means and described the budgetary effects of switching to the chained consumer price index (CPI) to index benefit programs and the tax code. Cost-of-living adjustments (COLAs) for Social Security benefits and other parameters of many federal programs and the tax code are currently indexed to increases in the traditional CPI, a measure of overall inflation calculated by the Bureau of Labor Statistics (BLS).
Snapshot of Foster Care, Adoption Assistance, and Guardianship Assistance April 18, 2013 Over the past two decades, the federal government has encouraged states to move more children from foster care to permanent homes through adoption or guardianship. During that time, the number of children in federally subsidized foster care has steadily declined, while the number of children whose adoptive parents receive federal adoption assistance has increased.
Snapshot of Spending for Military Retirement Pay April 17, 2013 Spending for military retirement pay and survivors’ annuities will rise by more than 30 percent over the next decade, CBO projects. About two-thirds of that growth will occur because those benefits are adjusted annually for inflation. The remaining growth will stem from increases in the initial benefit for new retirees; that benefit depends on service members’ basic pay during their active service, which typically grows faster than inflation.
Snapshot of the Supplemental Nutrition Assistance Program April 16, 2013 The number of people receiving benefits from the Supplemental Nutrition Assistance Program (SNAP, formerly called Food Stamps) has risen sharply in recent years—from about 26 million in 2007 to nearly 47 million in 2012. Total spending on SNAP has also grown significantly—from $35 billion in 2007 to $80 billion in 2012. Those increases are largely related to the severe recession and slow recovery: SNAP participation and spending automatically rise during periods of economic weakness because people’s incomes are lower.
CBO Releases New Report: Monthly Budget Review
Fannie Mae, Freddie Mac, and the Future of the Secondary Mortgage Market April 4, 2013 Fannie Mae and Freddie Mac are companies that were chartered by the Congress four decades ago to provide a stable source of funding for residential mortgages across the country, including loans to finance housing for low- and moderate-income families. To carry out that mission, they purchase mortgages that meet certain standards from banks and other originators, pool those loans into mortgage-backed securities (MBSs) that they guarantee against losses from defaults on the underlying mortgages, and sell the securities to investors.
CBO Releases New Report: The Army’s Ground Combat Vehicle Program and Alternatives
The Unemployment Insurance System April 1, 2013 In a new series of blog posts, CBO will be highlighting past work and publications relevant to the interests of the current Congress, including new Members and staff.