May 31, 2023 5:13PM 

# Biden-McCarthy Deal a Modest Start 

By [Chris Edwards](https://www.cato.org/people/chris-edwards) 

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Congress is considering the Biden-McCarthy debt-reduction deal. The Fiscal Responsibility Act of 2023 would reduce deficits by [$1.5 trillion](https://www.cbo.gov/system/files/2023-05/hr3746_Letter_McCarthy.pdf) over the coming decade.

The reduction would be a start at righting the federal government’s fiscal ship, but just a small start.

The $1.5 trillion in savings would take a very modest bite out of the $20 trillion in cumulative deficits and $80 trillion in cumulative spending [expected](https://www.cbo.gov/system/files/2023-05/59096-Budget-Outlook.pdf) over the coming decade.

Once Congress gets this budget battle behind it, it can move on to [larger reforms](https://www.cato.org/cato-handbook-policymakers/cato-handbook-policymakers-9th-edition-2022/cutting-federal-spending).

![Total Federal Spending and Deficits, $Trillions, 2024-2033](/sites/cato.org/files/styles/pubs_2x/public/2023-05/debt%20deal%202023.png?itok=ElbPxSNw) 

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