With the national debt exceeding $37 trillion, spending on Biden’s COVID credits has grown out of control. These funds were originally intended to be a temporary emergency subsidy, but are now contributing to rising deficits and falling fiscal space.
The Biden COVID credits temporarily expanded the Obamacare premium tax credits by eliminating the income limit for eligibility and increasing the tax credit amount. Currently, the COVID credits are scheduled to expire in December 2025. However, the Congressional Budget Office (CBO) projects that if they are extended, the cost would even outpace the projected spending of some entire federal agencies.
Based on CBO’s estimates, between 2025-2034 the Biden COVID credits would be nearly triple the entire Federal Bureau of Investigation’s budget. It would be larger than the National Parks Service and Department of the Interior’s budgets combined.
Allowing the COVID credits to sunset on schedule prevents a temporary emergence measure from becoming a permanent budget liability. At a time when major programs are already straining the nation’s finances, Congress cannot afford to extend the credits.
