CBO Forecast: US Fiscal Deficit to Stay High in 2026

Deficit Outlook Remains Elevated for 2026

A new report from the Congressional Budget Office (CBO) projects that the federal budget deficit for 2026 will reach $1.9 trillion, matching the expected level for 2025.

This forecast highlights persistent fiscal imbalances despite gradual economic recovery. The CBO report emphasizes growing pressures from mandatory spending programs and rising interest costs on the national debt.

Economic Context and Policy Implications

Several factors contribute to the current fiscal picture, including tax policy changes, increased social spending, and shifting economic growth projections. The forecast assumes continuation of current policies without new legislative changes.

• Deficit expected to remain flat at $1.9 trillion
• Interest costs on federal debt continue rising
• Healthcare and social program expenses increase

The findings have sparked renewed debate about long-term fiscal sustainability, with experts urging comprehensive budget reforms.