Stimulus Bill to Cost $75 Billion More Than Expected, CBO Says

The $787 billion federal stimulus package that Congress passed last year has gotten even bigger -- now expected to cost $862 billion, over the next 10 years, according to the Congressional Budget Office.

The nonpartisan CBO report, published Tuesday, attributes the $75 billion increase to added unemployment-related costs. More Americans are receiving unemployments benefits for lost jobs that the stimulus bill was meant to save, the report says.

About $21 billion of the added costs stem from higher unemployment compensation payments, while the remainder of the increase comes from food assistance payments and interest payments from states on taxable government bonds, the Washington Times reported.

In its report on the country's dire financial straights, the CBO also cites huge budget deficits, noting that the 2010 fiscal year budget is likely to reach $1.3 trillion.

Increased government spending has been the source of contentious debate between Republicans and Democrats -- amid two wars and the worst economic slump since the Great Depression.

Obama is expected to focus his State of the Union address Wednesday on job creation and announce a freeze on some discretionary spending programs.

Click here to read more from the Washington Times.