The U.S. Congressional Budget Office (CBO) has projected a $1.9 trillion deficit for 2026, maintaining a similar level to 2025. The CBO report highlights that increased revenues from tariffs imposed during Trump's administration are expected to reduce the deficit by $3 trillion over the next decade. However, the deficit is anticipated to rise to $3.115 trillion by fiscal year 2036, representing 6.7% of GDP. The report also notes that the Republican tax cut law of 2025 will contribute an additional $4.7 trillion to the deficit over ten years. Furthermore, reduced immigration is projected to add $500 billion to the deficit. The average deficit from fiscal year 2027 to 2036 is expected to account for 6.1% of GDP.