U.S. deficit, debt on ‘unsustainable course’

WASHINGTON—At the current rate of government spending, the federal deficit will top $1 trillion in fiscal year 2020. That’s the warning coming from the nonpartisan Congressional Budget Office. The projection announced Wednesday increased by $63 billion to account for the massive budget deal President Donald Trump and Democratic leaders in Congress reached earlier this summer. The report notes the red ink could increase if the ongoing trade war with China slows consumer spending.

What does this mean for the United States? The annual deficits, the difference between what the government takes in through revenue and what it spends, add to the national debt, which stands at about $22.5 trillion. CBO Director Phillip Swagel said the “federal debt, which is already high by historical standards, is on an unsustainable course.”

Dig deeper: Read my report in The Stew on how this summer’s budget deal revealed shifting priorities among Republican congressional leaders.