On July 28, 2023, the White House announced a revision to its fiscal 2023 U.S. budget deficit forecast, now projected to be $1.543 trillion. This figure represents a decrease of $26 billion from

the previous March budget forecast. The revision is primarily attributed to a significant reduction in government outlays after the U.S. Supreme Court struck down President Joe Biden's proposed student loan forgiveness program.

The Office of Management and Budget released its Mid-Session Review update, indicating that the court's decision on student loan forgiveness will lead to a reduction in outlays by $259 billion. However, there will be a slight offset as spending increases due to rule changes regarding income-driven repayments.

The rejection of the student loan forgiveness plan has had a notable impact on the budget outlook for 2023, prompting adjustments to accommodate the court's ruling. As the administration navigates these fiscal changes, it remains to be seen how other economic factors will come into play throughout the year. Photo by Alex Proimos from Sydney, Australia, Wikimedia commons.