Ongoing large federal deficits, projected by the CBO at $1.9 trillion for fiscal year 2026 and rising thereafter, continue to drive net borrowing as mandatory spending, net interest costs, and outlays exceed revenues. The 2025 reconciliation legislation expanded defense and border funding while extending prior tax provisions, adding trillions to cumulative deficits over the decade and raising the debt limit to $41.1 trillion. Debt held by the public stands near 101 percent of GDP and is on track to reach 120 percent by 2036 under current law, with no enacted measures yet to stabilize or reverse the trajectory before 2027. Fiscal year 2027 appropriations debates and any debt-limit adjustments in late 2026 or 2027 represent the nearest procedural checkpoints that could alter near-term borrowing patterns.