Federal Credit & Insurance
Relative to the annual economic output of the United States, how much money has the federal government committed for all private credit and insurance programs like mortgage guarantees, student loans, and crop insurance?
Correct Answer
In 2023, the Congressional Budget Office estimated that "at the end of 2021, the covered amount for federal credit and insurance programs" was $37.3 trillion. This was 158% of the nation's $23.6 trillion GDP in 2021. Per the Congressional Budget Office, "The federal government operates credit programs that provide direct loans to borrowers and loan guarantees to private financial entities as well as insurance programs that offer coverage to citizens and businesses. The loans, guarantees, and insurance provided through those programs represent financial commitments that the government has made. ... Federal loan guarantees and insurance coverage represent contingent liabilities - that is, they could result in net outflows of cash from the government depending on the outcome of various events."
DocumentationFederal Credit & Insurance U.S. Economic Output