On June 3, President Biden signed into law the Fiscal Responsibility Act of 2023 (FRA), which suspends the limit on federal debt through January 1, 2025, and makes a number of changes that affect federal spending and revenues. CBO provided an assessment of the budgetary effects of that act in a letter dated May 30.

This report builds on that earlier assessment by showing how those budgetary effects change projections of federal debt. Specifically, the $1.5 trillion reduction in projected deficits estimated to result from the FRA over the next 10 years reduces projected federal debt held by the public in 2033 by about 3 percent, from $46.7 trillion (or 119 percent of gross domestic product, or GDP) to $45.2 trillion (or 115 percent of GDP).