Washington ignores America's fiscal cliff
By Neil Irwin
Published on March 22, 2026.
The United States is facing a dire and unsustainable fiscal outlook, with recent policy developments affecting the fiscal picture significantly affecting the situation. The Trump administration is seeking $200 billion to fund the Iran war and replenish depleted weaponry, and the Supreme Court has ruled out the administration's use of emergency authority to impose tariffs. Despite this, there has been little evidence of lasting restraint on federal spending. The Congressional Budget Office is projecting deficits of around 6% of GDP each year for the next decade, and these projections have predicted a public debt of 120% of the GDP by 2036 compared to about 100% now. Social Security could run out of funds in 2032 if Congress can't extend benefits.
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