Poverty and Income Security
In CBO’s projections, federal budget deficits total $20 trillion over the 2025–2034 period and federal debt held by the public reaches 116 percent of GDP. Economic growth slows to 1.5 percent in 2024 and then continues at a moderate pace.
This interactive tool, updated in January 30, 2024, allows users to explore how various policies to increase the federal minimum wage would affect earnings, employment, family income, and poverty.
Presentation by Elizabeth Ash, William Carrington, Rebecca Heller, and Grace Hwang of CBO’s Labor, Income Security, and Long-Term Analysis and Health Analysis divisions to the Children’s Health Group, American Academy of Pediatrics.
In 2020, the coronavirus pandemic and the ensuing federal response had significant effects on the distribution of household income. Income inequality before transfers and taxes increased, but inequality after transfers and taxes decreased.
CBO regularly analyzes the distribution of income in the United States and how it has changed over time. This slide deck presents the distributions of household income, means-tested transfers, and federal taxes between 1979 and 2020.
- Working Paper
Exploring the Effects of Medicaid During Childhood on the Economy and the Budget: Working Paper 2023-07
On a present-value basis, CBO estimates that long-term fiscal effects of Medicaid spending on children could offset half or more of the program’s initial outlays, depending on sets of reasonable parameter values.
- Blog Post
Some federal policies involve short-term expenditures that result in economic and budgetary effects far in the future. CBO has been building analytic capacity to consider a dynamic framework for policies that would have long-term effects.
Answers to Questions for the Record Following a Hearing on Alternative Payment Models and the Slowdown in Federal Health Care Spending
The Senate Committee on the Budget convened a hearing at which Chapin White, CBO’s Director of Health Analysis, testified. This document provides CBO’s answers to questions submitted for the record.
CBO estimates that the Center for Medicare & Medicaid Innovation’s (CMMI’s) activities increased federal spending between 2011 and 2020 and will also increase it from 2021 to 2030. In 2010, CBO projected that CMMI would produce savings.
In 2023, federal subsidies for health insurance are estimated to be $1.8 trillion, or 7.0 percent of gross domestic product (GDP). In CBO and JCT’s projections, those net subsidies reach $3.3 trillion, or 8.3 percent of GDP, in 2033.