Legislation Enacted in the Second Session of the 116th Congress That Affects Mandatory Spending or Revenues
CBO estimates that the effects on revenues and mandatory spending of laws enacted in 2020 will add $2.8 trillion to deficits from 2020 to 2030—the net result of a $634 billion reduction in revenues and a $2.2 trillion increase in outlays.
This Congressional Budget Office report summarizes the agency’s estimates of the effects on mandatory spending or revenues of authorizing legislation that was enacted during the second session of the 116th Congress (January 3, 2020, through January 3, 2021). The estimates are for the enacted versions of the relevant legislation. CBO prepared each estimate when the legislation was last considered by the Congress, and except for some provisions related to unemployment insurance, the agency measured costs and revenues against the baseline projections used for budget enforcement by the House and Senate Committees on the Budget. Estimates of changes to tax law were provided by the staff of the Joint Committee on Taxation. For consistency, each estimate covers the same period as the one CBO used for the corresponding cost estimate during the session.
According to CBO’s estimates, the effects on revenues and mandatory spending of laws enacted during the second session of the 116th Congress will increase budget deficits in fiscal year 2020 and cumulatively over the 2020–2030 period. In total, CBO estimates, those laws will add about $2.8 trillion to the cumulative deficit over that period—the net result of a $634 billion reduction in revenues and a $2.2 trillion increase in outlays.