The Congressional Budget Office (CBO) has issued its annual projection report for FY 2012-2022, estimating a $1.079 trillion deficit for FY 2012, while suggesting that deficits will begin to shrink beginning in 2013 if the Bush-era tax cuts expire and the $1.2 trillion automatic cuts outlined in the Budget Control Act are allowed to take effect. However, such action would likely also trigger higher unemployment and a sharp decline in economic growth.

CBO and Office of Management and Budget (OMB) estimates present a bleak forecast for our nation's fiscal future. In efforts to stabilize growing deficits while restoring fiscal responsibility, the president and Congressional leaders are continuing to debate and propose new and revised approaches for addressing the deficit.

Budget Control Act of 2011
President Obama and Congress reached a bipartisan agreement to raise the statutory debt limit through 2012 and reduce the deficit by over $2 trillion. Learn more.

Joint Select Committee on Deficit Reduction
A bipartisan panel of 12 lawmakers from each party in each chamber were charged with recommending at least $1.2 trillion in further deficit reduction. Learn more.

President's Deficit Reduction Framework
President Obama has unveiled his plan for reducing nation's long-term debt and deficits, including a framework to reduce the deficit by $3.5 trillion over the next 10 years. Learn more.

Bipartisan Fiscal Deficit Commission
Following its creation by President Obama's executive order in February 2010, a bipartisan deficit commission issued formal policy recommendations in December 2010 with the goal of bringing the budget closer to balance and restoring fiscal stability. Learn more.          

Statutory PAYGO
President Obama has signed into law legislation that re-establishes statutory pay-as-you-go (PAYGO) budgeting requirements mandating that most new spending increases or tax cuts be offset. Learn more.