Overview

• The Congressional Budget Office predicts U.S. federal debt held by the public will reach 107% of GDP by 2029 and 181% by 2053 if current laws remain unchanged.
• Rising debt levels could slow economic growth, increase interest costs, and reduce federal budget flexibility, the CBO warns.
• The projected debt levels would be the highest in U.S. history, surpassing the World War 2-era record of 106% of GDP.
• Healthcare, Social Security, and net interest costs are projected to rise substantially as a share of the economy over the next 30 years.
• The CBO's latest projections show slightly lower debt levels than previous forecasts, due in part to recent deficit reduction legislation, but long-term fiscal challenges remain.