The sequester replacement bill proposed by Senate Democrats, and endorsed by the White House, would add $7.2 billion to the federal deficit over ten years, according to the nonpartisan Congressional Budget Office (CBO).
“CBO estimates that S. 388 would increase direct spending by $62.4 billion and revenues by $55.1 billion over the 2013–2023 period. Thus, the cumulative deficit would increase by $7.2 billion from those changes,” CBO wrote in a report.
The Democratic bill would replace the $85 billion in automatic cuts scheduled to take effect on Friday with a mixture of tax increases and spending cuts to defense programs and farm subsidies. However, those spending cuts would be phased in over a ten-year period, whereas the sequestration cuts would occur this year.
The Senate will vote Thursday on the Democratic plan, as well as a Republican bill that would essentially keep the sequester in place, but give the Obama administration greater flexibility to administer the cuts. Both are expected to fail. Congressional leaders will then meet at the White House on Friday (hours before sequestration officially takes effect) to discuss how to proceed.