Wednesday, January 27, 2010

CBO: Stimulus to Cost Extra $75 billion Because It Failed to Save Jobs

The nonpartisan CBO has a new report on the stimulus. The bill will cost an extra $75 billion in unemployment benefits, food assistance payments and other expenses stemming from lost jobs that the stimulus bill was meant to save. The total stimulus cost will now be $862 billion.

FOX News reported:
The nonpartisan CBO report, published Tuesday, attributes the $75 billion increase to added unemployment-related costs. More Americans are receiving unemployment benefits for lost jobs that the stimulus bill was meant to save, the report says.

About $21 billion of the added costs stem from higher unemployment compensation payments, while the remainder of the increase comes from food assistance payments and interest payments from states on taxable government bonds, the Washington Times reported.

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