The national debt topped $22 trillion just two years into Trump’s tenure.
Debt growing toward record level: The national debt topped $22 trillion just two years into Trump’s tenure, and federal debt held by the public is projected to rise to $31.4 trillion at the end of 2030, CBO said. That amounts to 98 percent of GDP.
Absent significant policy changes, debt held by the public could climb as high as 180 percent of GDP in 2050, “well above the highest level ever recorded in the United States,” the budget office noted.
Deficit reaches $1 trillion milestone: Measured as a percentage of economic output, the deficit is projected to widen from 4.6 percent of GDP this year to 5.4 percent in 2030.
CBO’s annual report follows recent Treasury Department data that found the year-end deficit exceeded $1 trillion in 2019, marking the first calendar year during which the budget gap has blown past the trillion-dollar mark since 2012.
The worsening deficit comes despite the president’s 2016 campaign pledge to balance the budget and curb federal spending. Instead, the budget gap expanded after the administration and Congress embraced the Republican tax revamp in 2017 and a two-year budget deal last summer.
Top officials at the White House budget office have failed in their attempts to substantially cut spending. And although Trump is expected to propose funding reductions in the release of his fiscal 2021 budget on Feb. 10, the president is expected to back spending bills later this year that increase federal funding by a total of $5 billion for the military and non-defense programs, in honoring the bipartisan deal his administration struck with congressional leaders last year.