The Long-Term Budget Outlook: 2025 to 2055

The federal debt is on track to reach unprecedented heights—156% of GDP by 2055—driven by persistent deficits, rising interest costs, and the weight of an aging population. Spending for Medicare and Social Security is projected to soar, while economic growth slows and interest payments to foreign debt holders climb. The report warns of long-term risks like reduced private investment, economic drag, and limited flexibility for future policy action. If current laws remain unchanged, the gap between spending and revenue could strain both fiscal stability and economic resilience.