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CBO Warns U.S. Fiscal Path Is Unsustainable in New 10-Year Outlook

The agency links the deterioration chiefly to last year’s tax law, with higher tariffs providing a short‑lived, inflationary offset.

Overview

  • The baseline shows a roughly $1.9 trillion federal deficit in fiscal 2026 rising to about $3.1 trillion by 2036.
  • Debt held by the public increases from about 101% of GDP this year to around 120% within a decade, surpassing the post‑World War II peak.
  • CBO scores the One Big Beautiful Bill Act as adding about $4.7 trillion to deficits through 2035, while reduced immigration raises deficits by roughly $500 billion.
  • Expanded tariffs are projected to trim deficits by around $3 trillion, with revenues front‑loaded and near‑term inflation higher through 2029.
  • Net interest outlays more than double from about $1 trillion in 2026 to roughly $2.1 trillion in 2036, totaling near $16 trillion over ten years, as CBO also advances the Social Security OASI exhaustion date to 2032 and forecasts slower growth than the administration.