The United States is expected to add trillions to its national debt over the next decade, surpassing previous projections.

The Congressional Budget Office (CBO) forecasts the national debt to exceed $56 trillion by 2034, driven by rising spending on Social Security, Medicare, and interest expenses outpacing tax revenues.

The budget deficit is projected to grow from $1.9 trillion in 2024 to $2.9 trillion by 2034. Debt held by the public is expected to increase from 99% of GDP in 2024 to 122% by 2034.

These projections come as lawmakers prepare for major legislative battles over taxes and spending. With most of the 2017 Trump tax cuts expiring in 2025, decisions will need to be made about their renewal and funding.

Additionally, the statutory borrowing cap will need to be addressed again after its suspension ends next January, DNYUZ has reported.

The fiscal outlook is further strained by an aging population affecting retirement and medical programs, leading to potential benefit reductions.

Despite bipartisan concerns about the rising debt amid inflation and high interest rates, managing spending remains challenging.

The CBO’s projections assume the 2017 tax cuts will not be extended, although this is considered unlikely.

Written by B.C. Begley