Inflation Reduction Act Will Add to Deficit for First Six Years: CBO

Sen. Joe Manchin (D-W. Va.) (at left) talks with Senate Majority Leader Charles Schumer (D-N.Y.) before the ceremony in the Eisenhower Executive Office Building in Washington, D.C., on March 15, 2022. Chip Somodevilla/Getty Images

A recent report by the Congressional Budget Office (CBO) shows that Senate Democrats’ proposed Inflation Reduction Act will raise the budget deficit within the next six years.

In the 10-year period between 2022 and 2031, the Inflation Reduction Act is calculated to reduce the budget deficit by $101.5 billion, according to the CBO report published on Aug. 3. However, in the first six years, between 2022 and 2027, deficits are projected to increase by $24.6 billion.