EDITORIAL: The sea of red ink continues to proliferate

Summary

The Congressional Budget Office reports a federal budget deficit for fiscal 2025 of $1.8 trillion, a modest $8 billion decline from 2024, while national debt approaches $38 trillion. Interest payments on the debt surpassed $1 trillion for the first time in fiscal 2025. The deficit equals about 6% of GDP — a peacetime high outside the pandemic — and higher tax receipts were fully offset by rising spending. Structural shortfalls threaten entitlement trust funds, with Social Security reserves projected to be exhausted by 2034 and Medicare soon after. The editorial urges lawmakers to end political gamesmanship, address long-term fiscal risks and convene a fiscal commission to map a sustainable path forward.

Key Points

Fiscal 2025 deficit is projected at $1.8 trillion, slightly down from 2024 but still alarmingly large.
National debt is nearing $38 trillion; interest on the debt topped $1 trillion in fiscal 2025.
The deficit is about 6% of GDP — unusually high in peacetime except during the pandemic.
Higher tax receipts (+$300 billion) were entirely absorbed by increased spending.
Social Security and Medicare trust funds face depletion (Social Security by 2034, Medicare shortly after), creating urgent long-term challenges.
Congress is deadlocked over a continuing resolution amid a government shutdown; partisan bargaining risks embedding temporary pandemic-era measures as permanent expenses.
The editorial calls for a bipartisan fiscal commission to produce a realistic plan to stabilise the nation’s finances and reform entitlements.

Content summary

The piece summarises the latest CBO monthly report showing a $1.8 trillion deficit for fiscal 2025 and places the figures in context: debt nearing $38 trillion, record interest costs and a deficit-to-GDP ratio not seen in peacetime outside the pandemic. Although tax receipts climbed, so did federal outlays, meaning higher revenue did not reduce borrowing. The editorial criticises Congressional gridlock during a government shutdown, highlights the danger of making temporary pandemic-era spending permanent, and warns of looming insolvency in Social Security and Medicare trust funds. It notes some spending cuts achieved by the Trump administration but insists deeper, bi-partisan action is necessary. The recommended immediate step is forming a fiscal commission to draft a sustainable roadmap.

Context and relevance

This editorial matters because it ties a topical political standoff (a shutdown and continuing resolution fights) to larger, long-term fiscal risks that affect economic stability, interest costs, and entitlement solvency. For readers tracking national finances, public spending priorities or political accountability, the piece frames the issue as governance failure rather than a transient budgeting quibble. It also reflects broader trends: rising debt service costs crowding out other priorities, and the political difficulty of reforming long-term programmes even as projections turn red.

Why should I read this?

Want the money-picture without wading through dense CBO pages? This editorial cuts to the chase: the U.S. is borrowing at unsustainable levels, interest bills are exploding, and politicians are more focused on point-scoring than fixes. If you care about taxes, retirement security or macro stability, it’s worth five minutes.