WASHINGTON, DC – Friday, the Joint Economic Committee Chairman David Schweikert sent House Budget Committee Chairman Jodey Arrington its latest Views and Estimates letter as required by the Congressional Budget Act of 1974 providing policy recommendations consistent with the goals of the Employment Act of 1946. In the letter, the JEC outlines its economic evaluation of the Budget, analyzes the programs driving Federal debt and deficits, and proposes solutions to achieve long-term growth.

“The nation continues to navigate a precarious path toward fiscal insolvency, and it demands urgent action to avoid catastrophic consequences,” writes Chairman Schweikert. “Congress should prioritize policies that facilitate high-skilled immigration, strategically promote technological innovation, work to build a healthier population, and enable economic expansion as solutions to America’s pressing challenges.”

The JEC finds the rising debt-to-GDP ratio is an existential threat to the economic security of the United States. To rein in and slow the growth of federal debt, the letter focuses on solutions that address healthcare spending and guidelines, changing demographics and skills-based immigration, innovation incentives and expanded use of enhanced technology, and tax policies.

Key findings include:

• The rapid expansion of public debt as a share of the economy represents a pressing risk for the United States. Growing deficits erode investor confidence, crowd out private and public investment, and push up borrowing costs, weakening economic growth. A range of economic forecasters project long-run real GDP growth between only 1.8 and 2.0 percent.
• Healthcare accounted for more than one-quarter of Federal spending in FY2024 and continues to grow more quickly than other categories. Policymakers should focus on realigning incentives to cure underlying diseases to alter healthcare cost projections.
• The nation’s demographics pose a great challenge: Americans are aging and leaving the workforce while the fertility rate is not high enough to effectively replace them. Reforming the U.S.’ immigration policies will benefit the system and reduce deficits.
• Increasing output per worker is also critical to addressing economic challenges driven by demographic shifts. However, bottlenecks created by government intervention often inhibit productivity gains that would otherwise bolster innovation and growth.
• Recent pro-growth tax and regulatory policies are a critical first step, but more can be done to stimulate employment and economic growth.

 The letter is available here.