WASHINGTON (AP) — A new report from the nonpartisan Congressional Budget Office (CBO) projects an increase in long-term federal deficits and a surge in national debt, largely due to elevated spending on Social Security, Medicare, and debt servicing costs.
The fiscal outlook has slightly worsened compared to last year's analysis. Key factors include changes brought about by recent tax and spending legislation and the administration's focus on immigration enforcement.
As a result, the anticipated deficit for 2026 is set to rise by approximately $100 billion, with total deficits from 2026 to 2035 expected to increase by $1.4 trillion. Public debt could soar from 101% to 120% of GDP, eclipsing previous records.
While higher tariffs could help offset some of these increases by generating an additional $3 trillion in federal revenue, they are also likely to lead to higher inflation between 2026 and 2029.
This growing debt means less government funding for vital areas such as infrastructure, education, and health, which are essential for fostering long-term economic growth.
Experts stress the importance of addressing these deficits, with Jonathan Burks from the Bipartisan Policy Center emphasizing the urgency for policymakers to explore options to raise revenue and reduce spending.
As 2026 approaches, the relationship between rising debt and personal economic conditions is becoming clearer to voters, underscoring the need for solutions to stabilize national finances.
