COVID-19

As Passed by the Senate on March 6, 2021

This document provides additional information on the economic forecast that CBO initially released on February 1, 2021.

Senate Amendment 2652 as proposed by Senator McConnell on September 8, 2020

As passed by the House of Representatives on October 1, 2020

By providing financial support to households, businesses, and state and local governments, federal laws enacted in response to the 2020 coronavirus pandemic will offset part of the deterioration in economic conditions brought about by the pandemic.

CBO examines four laws enacted in response to the 2020 coronavirus pandemic and summarizes their effects on federal spending, revenues, and the deficit. CBO also provides details about the laws’ effects on discretionary spending, mandatory spending, revenues, and mandates.

In this letter, CBO responds to questions about the economic outlook, describing how its projections of U.S. gross domestic product have declined since January and how recent legislation will affect the economy.

CBO describes certain budgetary effects of the coronavirus pandemic, including how tax deferrals will affect federal revenues and what laws enacted in response to the pandemic will have the largest effect on the federal budget deficit.

The CARES Act granted a temporary increase of $600 per week in the benefit amount provided by unemployment programs. In this letter, CBO examines the economic effects of extending that increase from July 31, 2020, to January 31, 2021.

The two largest differences between the two forecasts result from the economic effects of the COVID-19 pandemic in reducing output and the legislation enacted between January and early May in response, which partly offsets that reduction.

As passed by the House of Representatives on May 15, 2020

CBO plans to adjust its usual report schedule to keep the Congress informed about the rapidly evolving economic and budgetary consequences of the 2020 coronavirus pandemic.

This letter answers questions from Congresswoman Schakowsky related to federal funding for state and local governments.

Presentation by Phillip Swagel, CBO’s Director, to the Committee on the Budget, U.S. House of Representatives.

As passed by the Senate on April 21, 2020

As enacted on March 27, 2020, as Public Law 116-136

Enacted as Public Law 116-127 on March 18, 2020

As a result of the continued disruption of commerce stemming from the coronavirus pandemic, CBO expects the unemployment rate to exceed 10 percent as gross domestic product declines during the second quarter.

As posted on the website of the House Committee on Appropriations on March 4, 2020