FEATURED TOPIC America's Fiscal Future GAO takes a big-picture look at the nation’s fiscal condition and offers resources to help policymakers get the nation on a more sustainable fiscal path. Jump To: Overview The Nation’s Unsustainable Fiscal Path The federal government faces an unsustainable fiscal future. In February 2024, we released our annual report on the nation’s fiscal health, highlighting both short-term and long-term risks. Federal debt held by the public (that is, the total amount of money that the federal government owes to its investors) will continue to grow faster than the economy, which is unsustainable. Federal debt held by the public -- past, present, and future. Federal debt held by the public -- past, present, and future Historically, debt has decreased during peacetime and economic expansions. But this pattern has changed in recent decades. Unless current revenue and spending policies change, by 2028 debt will reach its historical high of 106 percent of GDP, according to our simulation. If unaddressed, it will grow more than twice as fast as the economy and reach 200 percent of GDP by 2050. Why Is This a Problem? The growing debt could create additional challenges for federal fiscal management, which could in turn cause challenges for American households and individuals, too. These potential challenges include: Risks to economic growth and lower investment in the private sector. These issues could lead to lower wages due to losses in productivity. Upward pressure on interest rates that would make it more expensive for individuals to borrow money—for example to purchase a car or home. These challenges may intensify over time if unaddressed. You can learn more about the current financial condition here. Why Is It Happening? The debt is growing because the country keeps borrowing to finance an increasingly large gap between government spending and revenue. The underlying conditions of the problem have existed for over two decades. Every fiscal year since 2002, the federal gove