"CBO Projections: U.S. Interest Payments Surpass Defense Spending, Deficit to Soar Over Next Decade"

The Congressional Budget Office's latest projections reveal that federal interest payments will surpass defense spending in 2024, a year earlier than previously estimated. This is due to higher-than-expected interest rates and lower defense spending resulting from the bipartisan Fiscal Responsibility Act of 2023. While spending caps may reduce the deficit over time, the federal debt is projected to reach $54 trillion by 2034, with interest payments becoming the largest budget item in the 2040s. The report highlights the urgent need for fiscal discipline and addressing federal health care spending and Social Security insolvency to avoid a potential economic crisis.