The Congressional Budget Office projects the U.S. national debt will reach $64 trillion within a decade, a stark increase from the current $39 trillion. The nonpartisan agency forecasts annual deficits will climb to $3.1 trillion by 2036, with the debt-to-GDP ratio heading toward 120%. This fiscal trajectory coincides with accelerated efforts by BRICS nations to reduce their holdings of U.S. Treasuries.
A report from the nonpartisan Congressional Budget Office projects total U.S. gross national debt will hit $64 trillion within a decade. The federal government is expected to borrow an additional $26 trillion between now and 2036.
The current deficit of $1.9 trillion is projected to climb to $3.1 trillion by 2036. Cumulative deficits are forecast at $24.4 trillion over the next ten years, averaging 6.1% of GDP annually.
CBO Director Phillip Swagel stated, “Our budget projections continue to indicate that the fiscal trajectory is not sustainable.” He attributed rising deficits to tax provisions including the permanent extension of parts of the 2017 Tax Act and increased spending on defense.
Interest payments alone will cross $1 trillion in 2026 and climb to $2.1 trillion by 2036. At that point, debt service will exceed current national defense spending.
This fiscal outlook provides context for the accelerating BRICS dollar exit. China, India, and Brazil collectively shed $144.6 billion in U.S. Treasuries over the past year.
China alone cut its holdings by $75.5 billion, a 10% reduction. ING bank warned in December 2025 that these nations are “Quietly leaving the Treasury market.”
