Congress faces an array of policy choices as it confronts large federal deficits and rising federal debt. In June 2024, under the assumption that current laws governing taxes and spending generally would not change, the Congressional Budget Office (CBO) projected that the federal deficit would average $1.9 trillion per year between 2025 and 2034, or 5.4 percent of gross domestic product (GDP) over that period. In comparison, over the past 50 years, the annual deficit averaged 3.7 percent of GDP. In response, the CBO published Options for Reducing the Deficit: 2025 to 2034 in December 2024.
