Congress‘ chief scorekeeper has again raised the cost estimate of President Obama‘s two-year-old economic-stimulus program, calculating it will end up costing taxpayers $821 billion — or $34 billion more than originally projected.
And the economic boost from the added government spending is beginning to wear off, the nonpartisan Congressional Budget Office said in a new report Wednesday. The CBO said that in the final three months of 2010, the stimulus was paying to keep between 1.3 million and 3.5 million people in jobs, both down from the peak recorded in the prior three-month period.
The drop was expected, since the biggest chunk of stimulus money was spent out during fiscal year 2010, which ended Sept. 30.
Mr. Obama‘s stimulus program turned two years old last week, but it remains a thorny political issue.
House Republicans sought to cancel several billion dollars in unspent stimulus money as part of the $61 billion in spending cuts they passed Saturday, and Republicans on both sides of the Capitol have introduced legislation to try to reclaim other money or audit what was actually spent.