CBO predicts US Federal deficits and debt increase next decade.

The Congressional Budget Office projects worsening US federal deficits and rising debt due to increased spending on Social Security, Medicare, and debt service payments, with the deficit reaching 5.8% of GDP in 2026 and averaging 6.1% over the next decade. Factors such as the “One Big Beautiful Bill Act,” higher tariffs, and immigration crackdown contribute to a $100bn higher deficit in 2026 and $1.4 trillion larger deficits from 2026 to 2035, leading to a debt-to-GDP ratio of 120%. CBO forecasts lower economic growth than the Trump administration, with inflation not hitting the Federal Reserve’s target until 2030, emphasizing the need for policymakers to address the issue promptly.

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