Overview
- The Congressional Budget Office estimated Thursday that the federal deficit for fiscal 2026 reached about $2 trillion as spending grew faster than revenue.
- Federal outlays totaled roughly $7.4 trillion in FY2026 with about $1.9 trillion newly borrowed, the gross national debt near $40 trillion, and the 10-year Treasury yield above 5 percent, which has pushed net interest spending sharply higher.
- Social Security trustees projected the OASI retirement trust fund will be exhausted in 2032, a shortfall that would cut scheduled benefits unless Congress enacts changes to revenues or program rules.
- Economists Kimberly Clausing and Natasha Sarin proposed a tax-side package designed to raise roughly $1 trillion through corporate-tax base reforms, much higher audit capacity at the IRS, a carbon fee starting near $40 per metric ton, and a 5% levy on the value of sports wagers.
- Political coverage diverges over causes and fixes: supporters of the 2025 One Big Beautiful Bill say it will spur growth and revenues while critics blame it for lower corporate receipts, and many analysts point to the roughly $870 billion annual tax gap as a concrete enforcement target for near-term revenue gains.