"The nonpartisan Congressional Budget Office's 10-year outlook projects worsening long-term federal deficits and rising debt, driven largely by increased spending, notably on Social Security, Medicare, and debt service payments. Compared with the CBO's analysis this time last year, the fiscal outlook has deteriorated modestly. Major developments over the last year are factored into the latest report, released Wednesday, including Republicans' tax and spending measure known as the " One Big Beautiful Bill Act,""
"As a result of these changes, the projected 2026 deficit is about $100 billion higher, and total deficits from 2026 to 2035 are $1.4 trillion larger, while debt held by the public is projected to rise from 101% of GDP to 120% - exceeding historical highs. Notably, the CBO says higher tariffs partially offset some of those increases by raising federal revenue by $3 trillion, but that also comes with higher inflation from 2026 to 2029."
The Congressional Budget Office projects worsening federal deficits and rising public debt over the next decade, driven by higher spending on Social Security, Medicare, and rising debt service. Recent policy changes factored into the outlook include the Republicans' 'One Big Beautiful Bill Act', higher tariffs, and an immigration crackdown that includes deporting millions from the mainland U.S. The 2026 deficit is about $100 billion higher and deficits from 2026 to 2035 are $1.4 trillion larger. Debt held by the public is projected to rise from 101% to 120% of GDP. Higher tariffs raise roughly $3 trillion in revenue but are projected to increase inflation from 2026 to 2029, with inflation not reaching 2% until 2030. Rising debt service will crowd out spending on infrastructure and education.
Read at Fast Company
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