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Washington ignores a looming fiscal emergency
Federal trust funds face insolvency by 2032, risking large spending cuts and debt exceeding 150% of GDP, according to the Congressional Budget Office projections.
- Recently, the Congressional Budget Office projected federal debt will rise over coming decades and tested plausible variations around its baseline, highlighting fiscal challenges for the U.S. federal government.
- Facing a large shortfall, the federal government spent a little over $7 trillion in 2025, raised $5.2 trillion in taxes and borrowed $1.8 trillion amid demographic stress and investment pressures.
- Under current rules, the Highway Trust Fund, financed by the gas tax, will be empty by 2028, and the Social Security retirement and Medicare hospital‑insurance funds are set to run out in 2032, requiring cuts of 24% and 12%.
- The CBO found the debt‑to‑GDP ratio, already at roughly 100 percent, is on track to exceed 150 percent, and future interest rates rising 5 basis points yearly could push it past 200 percent as lenders demand higher rates.
- Congress has often waived automatic cuts, and Washington, preoccupied with a government shutdown, says every year's delay makes solving the crisis harder before waiver options end.
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11 Articles
11 Articles
The Korea Times+4 Reposted by 4 other sources
Washington ignores a looming fiscal emergency
In its final report of the fiscal year, the U.S. Treasury Department delivered some unfortunate news. The government spent a little over $7 trillio...
·Seoul, Korea (the Republic of)
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Coverage Details
Total News Sources11
Leaning Left3Leaning Right1Center4Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 38%
C 50%
12%
Factuality
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