US Debt Crisis Worsens Under Biden Administration According to CBO Report

Data included in a new report by the nonpartisan Congressional Budget Office (CBO) shows that America's debt crisis grew substantially worse under President Joe Biden. Without significant changes, the United States will face unprecedented budget challenges over the next decade, difficulties that could cause a large economic crisis.

In a recently published report titled "The Budget and Economic Outlook: 2025 to 2035," CBO researchers projected government expenditures, revenues, and deficits for the U.S. government over the next decade.

CBO based its estimates on current law, not laws and spending programs that could develop in the future. That means CBO's projections don't consider policy objectives or proposed legislation from the Trump administration or the current Congress.

According to CBO's baseline estimates, annual federal spending is on track to increase dramatically over the next decade. In 2035, CBO estimates government spending will reach $10.73 trillion, compared to a little over $7 trillion in 2025.

CBO also estimates the annual budget deficit will soar to $2.4 trillion in 2033, $2.5 trillion in 2034, and $2.7 trillion in 2035. These figures are even more remarkable when you consider that CBO projects that taxpayers in 2035 will contribute nearly $2 trillion more in personal income taxes than they did in 2024. CBO estimates personal income tax revenues will hit $4.41 trillion in 2035, compared to $2.42 trillion in 2024.

A comparison of previous CBO budget projections show that the Biden administration and the Congresses of the Biden era had a tremendously negative effect on the national debt.

In February 2021, just weeks after Biden entered the White House, the CBO estimated that in 2031 federal spending would reach $7.65 trillion. But in its latest report, the first published since Biden left office, it now estimates that spending in 2031 will be $9.06 trillion, a figure that's 18% higher than the estimate made in 2021.

Similarly, CBO projected at the start of Biden's term that the federal budget deficit in 2031 would be $1.88 trillion. Now, CBO says it will be $2.23 trillion.

Further, CBO estimated in 2021 that the national debt would be $35.3 trillion in 2031. But CBO's estimate published this year suggests the budget deficit will be $41.99 trillion in 2031, an increase of more than $6.6 trillion.

Most troubling of all, the CBO's recent report projects the budget deficit to surpass $52 trillion by 2035. That's more than double the national debt recorded at the end of 2019.

If the Trump administration fails to correct the mistakes made during the Biden era, it could prove catastrophic for the U.S. economy.

America is currently in a debt spiral. To pay for past debts, the federal government borrows money. The more money it borrows, the more it has to pay in interest each year to finance the debt. The higher the interest payments, the more the government must borrow.

CBO's report estimates that by 2035, the annual interest paid to finance the national debt will reach $1.78 trillion. That's more than any other single program in the current federal budget, including Social Security, which costs about $1.5 trillion annually.

Government overspending was one of the primary drivers of recent inflation. Much of the money borrowed by the federal government is newly created for the purpose of paying debt. When the money supply increases too quickly, inflation occurs.

The only way to stop this destructive debt cycle is to slash spending or dramatically increase taxes. Increasing taxes is politically unpopular and horrible for economic growth, so cutting spending is the only reasonable way for the Trump administration and Congress to prevent the current debt crisis from getting even worse.

This is exactly why the recent efforts to slash government waste by Elon Musk and the newly created Department of Government Efficiency (DOGE) are so important. Government spending must be reduced immediately, or our economy is going to be in massive trouble over the next decade.

There is still time to end America's addiction to debt and save the economy from disaster, but the opportunity won't last forever.