New cost estimates from the Congressional Budget Office could pose a problem for Speaker John Boehner as he tries to rally conservative support for his two-step
plan to raise the federal debt ceiling and avert default next week.
The first installment of $900 billion is contingent on enacting 10 year caps on annual appropriations which the leadership had hoped would save well over $1 trillion. But CBO late Tuesday came back with a report showing the legislation would reduce deficits by $850 billion when measured against the agency’s most current projections for spending.
At one level, Boehner is the victim of his own success, since that same baseline is $122 billion lower in direct spending because of concessions the speaker won in the April government shutdown fight. But that won’t help him much with restless conservatives and this could force him now to readjust the bill with tighter caps to meet his goals.