CBO Raises U.S. Budget Deficit Projection by $400 Billion to Nearly $2 Trillion

Jun 20, 2024, 06:23 AM

The Congressional Budget Office (CBO) has raised its projection for the U.S. federal budget deficit by $400 billion, bringing the total to nearly $2 trillion for this year, a 27% jump. This increase is attributed to new foreign aid to Ukraine and Israel, as well as President Biden's student loan forgiveness policy. The national debt is now approaching $35 trillion, with annual interest payments exceeding $1 trillion. The CBO also projects that the national debt will rise to $56 trillion by 2034, equating to 122% of GDP. Interest costs are forecast to reach a near-record 3.1% of GDP this year, surpassing defense and Medicare spending. Additionally, the surge in immigration is expected to boost the economy and reduce deficits by $990 billion over the next decade.