This letter responds to a question from Senator Schumer about the effects on the deficit of the potential modifications to H.R. 5376, the Build Back Better Act, that were included in an analysis that the Congressional Budget Office released earlier. The modifications that CBO analyzed were specified by Senator Lindsey Graham and Congressman Jason Smith. The modifications would make various policies permanent rather than temporary, making the deficit larger than the version of the bill that was passed by the House of Representatives would.
Senator Schumer inquired whether CBO was asked to analyze any policies that would offset the costs of making various policies permanent. In CBO’s estimation, none of the modifications would make the deficit smaller over the 2022–2031 period, with one small exception.