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Making Sense of the Federal Budget Impasse

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In November, the U.S. Congress passed the Balanced Budget Act of 1995. The bill provided a fiscal package that would, according to Congressional Budget Office projections, balance the federal budget by fiscal year 2002. On November 20, President Clinton signed into law a Continuing Resolution for Fiscal Year 1996 that provided short-term financing for most federal government operations. It also heralded an agreement between the President and Congress on the goal of producing a long-term budget plan that would eliminate the federal deficit on the seven-year schedule proposed in the Balanced Budget Act.

In November, the U.S. Congress passed the Balanced Budget Act of 1995. The bill provided a fiscal package that would, according to Congressional Budget Office projections, balance the federal budget by fiscal year 2002. On November 20, President Clinton signed into law a Continuing Resolution for Fiscal Year 1996 that provided short-term financing for most federal government operations. It also heralded an agreement between the President and Congress on the goal of producing a long-term budget plan that would eliminate the federal deficit on the seven-year schedule proposed in the Balanced Budget Act.


Suggested citation: Altig, David, 1996. "Making Sense of the Federal Budget Impasse," Federal Reserve Bank of Cleveland, Economic Commentary, 01.15.1996.

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