CBO: U.S. debt on unsustainable path as Trump policies add $1.4 trillion to 10-year deficit
The nonpartisan Congressional Budget Office raised its 2026-2035 deficit projection by $1.4 trillion and warned federal debt will exceed postwar highs as interest costs and demographic shifts tighten fiscal options.
- CBO raised its 2026-2035 cumulative deficit forecast by $1.4 trillion from last year.
- Under current law federal debt will top 106% of GDP by 2030 and reach 175% of GDP by 2056.
- The 2025 reconciliation act is projected to add $4.7 trillion to deficits through 2035 while higher tariffs are expected to generate about $3 trillion in revenue.
- Administrative actions that reduce net immigration are estimated to increase the 10-year deficit by $500 billion and shrink the 2035 population by 5.3 million.
- Net interest costs are projected to more than double from $1 trillion in 2026 to $2.1 trillion by 2036 and reach 4.6% of GDP.
- The Social Security Old-Age and Survivors Insurance trust fund is now projected to be exhausted in 2032, one year earlier than CBO projected last January.