President Biden sent to Congress a proposed $7.3 trillion budget for fiscal year 2025, which will run from October 2024 through September 2025. It is reported to contain many of Biden's 2024 campaign promises, such as tax credits and increased taxes on the wealthy.  Not surprisingly, when unveiled the Republican members in Congress, particularly the majority leaders in the House, were critical of the enormous sum given current inflation issues, debt, and spending priority concerns.

Background: The Congressional Budget Office (CBO) released its semi-annual outlook on the federal budget, with its latest 10-year projection of annual federal budget deficits increasing steadily, to likely exceed $2.5 trillion by 2034, assuming current policies continue. Per a no surprises scenario, the federal government is projected to borrow an additional $20 trillion over the next decade. One driving factor is the impact of higher interest rates on the current $34 trillion (and growing) national debt. Back in 2021, interest expense in the federal budget totaled $350 billion, that is expected to increase to $860 billion this year, which is more than the defense budget. By 2034 annual interest expense is projected to be $1.6 trillion—more than one-fourth of all federal tax revenue.