Salem Radio Network News Wednesday, September 24, 2025

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Congressional Budget Office raises this year’s federal budget deficit projection by $400 billion

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( ) -q-25- UNDATED (Correspondent Jeremy House) “increased Medicaid spending.”

The Congressional Budget Office says it projects this year’s federal budget deficit to be $400 billion higher.

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TAG: Correspondent Jeremy House reporting. One other factor was higher spending on FDIC insurance after the agency had not yet recovered payments it made after the banking crises of 2023 and 2024.

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VERBATIM: The latest projection represents a 27% increase compared to the CBO’s original estimate released in February. The major drivers of the change include: higher costs from the supplemental spending package signed in April that provides military aid to Ukraine and Israel. Other factors include higher than estimated costs of reducing student loan borrower balances and increased Medicaid spending.

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