Key facts
- The U.S. Government Accountability Office (GAO) warned Congress and the Administration about the federal government’s long-term fiscal path.
- GAO projects that public debt will reach an unprecedented level by 2027.
- In fiscal year 2024, the government spent over $1.8 trillion more than it took in, marking the fifth year in a row with a deficit above $1 trillion.
- GAO projects that, absent a change in fiscal policy, debt held by the public will grow more than twice as fast as the economy over a 30-year period.
- Government spending on net interest in FY 2025 exceeded federal spending on national defense.
- As of April 2026, publicly held debt was $31.3 trillion, roughly equal to the size of the country's economy.
The U.S. Government Accountability Office (GAO) has issued its annual report on the nation's fiscal health, warning that the federal government is on an unsustainable fiscal path. The report highlights that the government has spent more than it collected in revenue nearly every year this century, leading to increased borrowing.
According to the GAO's projections, if current spending and revenue policies continue, debt held by the public will grow more than twice as fast as the economy over the next 10 years, reaching 123% of the size of the economy in 2036. The report also notes that in fiscal year 2024, the government spent over $1.8 trillion more than it took in, marking the fifth consecutive year with a deficit exceeding $1 trillion. Spending on net interest alone in FY 2025 is projected to exceed federal spending on national defense and is expected to continue growing.
GAO recommends that Congress develop a strategy to address these fiscal challenges, including establishing fiscal rules, reducing annual deficits, addressing financing gaps for Social Security and Medicare, and improving fiscal responsibility. The agency emphasizes that the longer action is delayed, the more drastic the necessary measures will need to be.