The U.S. federal government closed fiscal year 2026 with a deficit of nearly $2 trillion, according to Congressional Budget Office figures, second only to the pandemic years of 2020 and 2021. Federal revenue rose 3% to more than $5.4 trillion, but spending rose 6% to $7.4 trillion, with Social Security, Medicare and Medicaid up 7% and interest on the debt up 11%. The author argues that even if the $130 billion in tariffs struck down by the Supreme Court had been kept, it would cover less than one-tenth of the gap. Rising debt will push up interest rates for homebuyers and small businesses, and the author proposes reforms such as indexing the retirement age to life expectancy, converting Medicare to premium support, and capping Medicaid per capita. Pointing to France, where debt equals 120% of GDP and interest payments are rising quickly, the author warns that the U.S. could reach the same level in a few years.
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According to the CBO, the federal government closed fiscal year 2026 with a deficit of nearly $2 trillion, worse only than the pandemic years of 2020 and 2021. Revenue rose 3% to more than $5.4 trillion, but spending rose 6% to $7.4 trillion, and interest on the debt climbed 11% past $1.1 trillion. The author argues the problem is spending rather than a lack of money: outlays for Social Security, Medicare and Medicaid grew 7%, and even keeping the $130 billion in tariffs the Supreme Court struck down would cover less than one-tenth of the gap. The piece warns that US debt could reach 120% of GDP within a few years, as France's already has, raising interest rates and slowing growth. It proposes indexing retirement age to life expectancy, converting Medicare to premium support, and capping federal Medicaid funding per enrollee, arguing that inaction would prove far more painful.
- There no excuse for $2 trillion budget deficits – Daily News
The federal government closed fiscal year 2026 with a deficit of nearly $2 trillion, according to Congressional Budget Office figures, surpassed only by the 2020 and 2021 pandemic years. Federal revenue rose 3% to over $5.4 trillion, but spending rose 6% to $7.4 trillion, with entitlement spending up 7%, defense up 5% and interest on debt up 11% to more than $1.1 trillion. The article argues that even if roughly $130 billion in tariffs had been kept, it would cover less than one-tenth of the gap, and cites France, with debt at 120% of GDP, as a warning. It proposes reforms including indexing the retirement age to life expectancy, moving Medicare toward premium support, and capping Medicaid federal funding per enrollee.
- There no excuse for $2 trillion budget deficits – Orange County Register
The U.S. federal government closed fiscal year 2026 with a deficit of nearly $2 trillion, according to the Congressional Budget Office, second only to the pandemic years of 2020 and 2021. Federal revenue rose 3% to more than $5.4 trillion, but spending climbed 6% to $7.4 trillion, with interest on the debt up 11% to over $1.1 trillion. The author argues that even if the roughly $130 billion in tariffs struck down by the Supreme Court had been kept, they would cover less than a tenth of the gap. He calls for reforms to Social Security, Medicare and Medicaid, and warns that U.S. debt could reach 120% of GDP within a few years, as France’s already has.
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