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The [[COVID-19 pandemic in the United States]] impacted the economy significantly beginning in March 2020, as businesses were shut-down and furloughed or fired personnel. About 16 million persons filed for [[Unemployment benefits|unemployment insurance]] in the three weeks ending April 9. It caused the number of unemployed persons to increase significantly, which is expected to reduce tax revenues while increasing [[automatic stabilizer]] spending for unemployment insurance and [[Supplemental Nutrition Assistance Program|nutritional support]]. As a result of the adverse economic impact, both state and federal budget deficits will dramatically increase, even before considering any new legislation.<ref>{{Cite news |last1=Cohen |first1=Patricia |last2=Hsu |first2=Tiffany |date=April 9, 2020 |title='Sudden Black Hole' for the Economy With Millions More Unemployed |newspaper=[[The New York Times]] |url=https://www.nytimes.com/2020/04/09/business/economy/unemployment-claim-numbers-coronavirus.html}}</ref>
To help address lost income for millions of workers and assist businesses, Congress and President Trump enacted the [[CARES Act|Coronavirus Aid, Relief, and Economic Security Act]] (CARES Act) on March 27, 2020. It included loans and grants for businesses, along with direct payments to individuals and additional funding for unemployment insurance. The act carried an estimated $2.3 trillion price tag, with an expectation that some or all of the loans would ultimately be paid back including interest. While the law would have almost certainly increased budget deficits relative to the January 2020 10-year CBO baseline (completed prior to the COVID-19 pandemic), in the absence of the legislation, a complete economic collapse could have occurred.<ref>{{Cite web |date=April 8, 2020 |title=Short-Run Economic Effects of the CARES Act |url=https://budgetmodel.wharton.upenn.edu/issues/2020/4/8/short-run-effects-of-the-cares-act |website=Penn Wharton Budget Model}}</ref> However, as of 2023, many of these loans have been forgiven.<ref>{{Cite web |last=Pfieffer |first=Sacha |date=January 9, 2023 |title=How the Paycheck Protection Program went from good intentions to a huge free-for-all |url=https://www.npr.org/2023/01/09/1145040599/ppp-loan-forgiveness
CBO provided a preliminary score for the CARES Act on April 16, 2020, estimating that it would increase federal deficits by about $1.8 trillion over the 2020-2030 period. The estimate includes:
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