Lubbock Times

Today, the Congressional Budget Office (CBO) released its annual long-term budget outlook, detailing alarming trends in the country's fiscal health. The report projects unprecedented levels of federal debt and the slowest prolonged period of economic growth in U.S. history.

Budget Chairman Jodey Arrington (R-Texas) provided his perspective in a statement: "The CBO report confirms what we already know: America’s fiscal health is rapidly deteriorating, and our long-term outlook goes from bad to unimaginably worse with a projection of federal debt reaching $150 trillion by 2055, which is more than $1.6 million of debt per family of four. I have continued to sound the alarm on our out-of-control deficit spending and unsustainable debt—the single greatest threat to our country and our children’s future."

Arrington underscored the importance of acting promptly: "We must rein in Washington’s wasteful spending, restore economic freedom, and unleash prosperity in America once again." According to Arrington, the House budget aims for at least $1.5 trillion in savings over the next decade. "The House-passed budget blueprint will help us achieve just that. Our plan mandates at least $1.5 trillion in savings over the next decade, with a goal of saving even more. It's now up to the Senate to move with urgency to unlock the reconciliation process and deliver President Trump's full agenda. If we succeed, we can preserve America’s leadership in the world and secure the blessings of liberty for our children."

The CBO's projections indicate that gross federal debt will escalate to $150 trillion by 2055, equating to more than $1 million per American household. The debt is expected to rise from 123 percent of GDP in 2025 to 169 percent in 2055. Historically, debt has averaged 69 percent of GDP over the past half-century. Moreover, the federal deficit is predicted to exceed 5 percent of GDP annually from 2020 to 2055, marking a continuous high level not seen since World War II.

Projected mandatory spending is set to increase, constituting 78 percent of the budget by 2035, and 81 percent by 2055. Interest spending, meanwhile, is expected to rise from 3.2 percent of GDP in 2025 to 5.4 percent by 2055. Notably, interest payments are expected to surpass defense and other discretionary spending by 2052.

Revenue is anticipated to average 18.6 percent of GDP over the next 30 years, surpassing the historical average of 17.3 percent. However, economic growth is predicted to be sluggish, averaging only 1.6 percent per year over the same period. In contrast, post-World War II growth averaged 3.1 percent. Slow demographic changes are also anticipated, with population growth projected to be at its lowest historical levels, just 2 percent per decade through 2055. By 2033, deaths will outnumber births in the United States.