US Budget Deficit to Hit Record $1.85 Trillion Amid Low Growth, CBO Warns

• US projected to run a record budget deficit of $1.853 trillion in fiscal year 2026, reaching 5.8% of GDP.
• CBO estimates deficit-to-GDP ratio to average 6.1% over the next decade, rising to 6.7% by FY2036.
• Real GDP growth expected at 2.2% in 2026, then easing to 1.8% annually, significantly below Trump administration's 3-4% projections.
• Deficits are structural, driven by aging demographics (Social Security, Medicare) and surging interest costs, not just crisis spending.
• Net interest payments on federal debt to double to $2 trillion by FY2035; total public debt to hit $56.152 trillion (120% of GDP) by 2036.