CBO: US Federal deficits and debt to worsen over next decade
Summary
The Congressional Budget Office (CBO) released a report projecting that U.S. federal deficits and debt will worsen over the next decade. The increased spending on Social Security, Medicare, and debt service is a key driver of this rise in federal debt. The report notes that the deficit for the fiscal year 2026 will be higher than earlier projections.Key Facts
- The CBO projects U.S. federal deficits and debt will increase over the next ten years.
- Key spending areas contributing to this rise include Social Security, Medicare, and debt service payments.
- The deficit for fiscal 2026 is expected to be about 5.8% of GDP, similar to 2025.
- On average, the deficit-to-GDP ratio over the next decade will be 6.1%.
- President Donald Trump endorsed measures like the “One Big Beautiful Bill Act,” affecting fiscal projections.
- Tariffs raised federal revenue but also increased inflation concerns between 2026 and 2029.
- Total deficits from 2026 to 2035 are projected to be $1.4 trillion higher than earlier predictions.
- Debt is expected to rise from 101% of GDP to 120%, exceeding past highs.
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