Summary
The Congressional Budget Office (CBO) reports that the U.S. will face bigger federal deficits and debt over the next decade. This increase is mainly due to higher spending on programs like Social Security and Medicare, along with payments on the national debt.
Key Facts
- The CBO is a nonpartisan agency that provides budgetary and economic information.
- The latest 10-year outlook predicts an increase in federal deficits and rising debt.
- Major spending on Social Security and Medicare is driving the deficit rise.
- Debt payments, known as debt service payments, also contribute to increased spending.
- The 2026 deficit is projected to be $100 billion higher than previously expected.
- Total deficits from 2026 to 2035 are expected to be $1.4 trillion larger.
- Public debt is predicted to grow from 101% of GDP to 120% of GDP.
- Policy changes by the Trump administration, like higher tariffs and stricter immigration laws, have affected these projections.
