CBO’s projections suggest that, over the long term, changes in fiscal policy would need to be made to address the rising costs of interest and mitigate other adverse consequences of high and rising debt.
In coming decades, the aging of the population and rising health care costs will put increasing pressure on the federal budget.
Revenues under current law will not keep pace with spending.
Major trust funds will be exhausted within 10 years, reducing benefits for vulnerable people.
Changes to both spending and revenues could be made in many ways.
Undertaking new initiatives that were paid for would not improve the fiscal trajectory.
The longer action is delayed, the larger the policy changes would need to be.
