GAO Urges Immediate Action to Address America’s Unsustainable Fiscal Path

WASHINGTON (June 11, 2026) - For the first time since the aftermath of World War II, the federal government's publicly held debt temporarily surpassed the size of the entire U.S. economy. The U.S. Government Accountability Office (GAO) projects that, under current fiscal policies, debt will permanently exceed that threshold in the coming years. In its 10th annual report on the nation's fiscal health, released today, GAO warned that without immediate action, the situation will only grow more severe and costly for Americans.

"The rising debt is increasing the risk of a fiscal crisis, and it is time to take action," said Orice W. Brown, Acting Comptroller General of the United States and head of the U.S Government Accountability Office. "Continued delay will harm the well-being of the American people. Congress and the Administration must work together to develop a comprehensive long-term strategy."

GAO projects that without policy changes, publicly held debt will grow about twice as fast as the economy over the next 10 years, reaching 120 percent of the size of the economy in 2036. In 30 years, GAO projects that publicly held debt will exceed 250 percent of the size of the economy. The growing debt could have a range of negative effects, including higher borrowing costs for individuals and businesses, lower wages, and rising prices.

Immediate and sustained action is needed to shift the nation's current unsustainable fiscal path. The longer actions are delayed, the more dramatic they will need to be. The government spent almost $1 trillion on interest alone last year-an amount that exceeded the entirety of U.S. defense spending-and interest spending is projected to keep growing.

A comprehensive long-term strategy is necessary to guide the difficult policy choices that are needed to put the nation on a fiscally stable course. This strategy to slow the growth of federal debt should include:

• Adopting a fiscal target and rules to encourage fiscal discipline
• Addressing urgent financing shortfalls in the Social Security and Medicare trust funds
• Evaluating revenue and spending policies to ensure they can support the nation's long-term fiscal obligations

Almost every year for decades, the federal government has spent more money than it collects in revenue. Social Security and Medicare trust funds will be insolvent in 2032 and 2033 respectively, after which there will not be funds to pay beneficiaries all of what they are owed. GAO has continued to warn Congress of the serious economic, national security, and societal challenges that will face the nation. Changing America's fiscal trajectory will require tough choices, but the choices are necessary to get the country back on a sustainable long-term path. Reducing persistent annual deficits will require policy changes that significantly increase revenues, decrease spending or both.

For more information, visit GAO's web page, America's Fiscal Future, or contact Sarah Kaczmarek at [email protected].

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The Government Accountability Office, known as the investigative arm of Congress, is an independent, nonpartisan agency that exists to support Congress in meeting its constitutional responsibilities. GAO also works to improve the performance of the federal government and ensure its accountability to the American people. The agency examines the use of public funds; evaluates federal programs and policies; and provides analyses, recommendations, and other assistance to help Congress make informed oversight, policy, and funding decisions. GAO provides Congress with timely information that is objective, fact-based, nonideological, fair, and balanced. GAO's commitment to good government is reflected in its core values of accountability, integrity, and reliability.