The U.S. national debt is on track to reach $64 trillion within a decade as the federal government continues its trend of red-ink balances under President Donald Trump and Republican control of Congress.
The Congressional Budget Office released its marquee report Wednesday on the U.S. fiscal outlook, estimating that the tax and spending package Republicans enacted last summer — along with Trump’s immigration policies — will increase deficits by trillions of dollars over the next decade. That budget gap would essentially cancel out the roughly $3 trillion in deficit reduction Trump’s tariffs are expected to produce.
Congress’ nonpartisan scorekeeper predicts that the U.S. will run a $1.9 trillion deficit during the current fiscal year as the national debt currently exceeds $38 trillion. The annual deficit is then forecast to grow to $3.1 trillion by 2036.
Growing interest costs and spending on safety-net programs drives the expanding gap between how much money flows into federal coffers each year and how much is doled out.
Debt compared to economic output is also on track to soar in the coming years. CBO predicts that federal debt held by the public will rise from 101 percent of gross domestic product this year to 120 percent in a decade, exceeding the previous high of 106 percent of GDP in 1946.
As the CBO predicted last summer, the Republican megabill Trump signed into law in July will help boost economic growth this year. But that will be partially offset by the economic effects of Trump’s tariffs and increased immigration enforcement.
Read the full article here