The budget deal President Trump and House Speaker Nancy Pelosi struck last month will cost taxpayers $1.7 trillion over the next decade, the government’s chief scorekeeper said Wednesday, adding to a sea of red that threatens to swamp Washington.
In the near term, the deficit for 2019 will be $960 billion, the Congressional Budget Office said. That’s an increase of $63 billion compared to the CBO’s estimate three months ago.
By next year, the deficit will top $1 trillion, and will steadily increase. By 2028 the government will set a new record at $1.479 trillion, topping the worst fiscal year on record in 2009, which was split between Presidents Obama and George W. Bush.
Debt held by the public will nearly double over the next decade, reaching $29 trillion in 2029. At that rate, it will be about 95% of America’s gross domestic product — a rate not seen since immediately after the mobilization effort of World War II.
“The nation’s fiscal outlook is challenging,” said Phillip L. Swagel, CBO’s director. “Federal debt, which is already high by historical standards, is on an unsustainable course.”
He said “significant changes” are needed to set things right.
Congress is unlikely to listen.
Indeed, its most recent round of spending hikes, captured in the Trump-Pelosi budget deal, will boost the economy in the short term, thrilling those who warn of a possible recession. But the higher deficits and debt will actually mean worse growth over the long run, the CBO said.
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