US Treasury Secretary Scott Bessent is promoting his « 3-3-3 » plan aiming to reduce the federal deficit to 3% of GDP by 2028, but Congress refuses to adopt the massive spending cuts required. The national debt crossed $40 trillion on August 20, and the monthly deficit for July 2026 reached $432 billion, placing the annual deficit between $1.9 trillion and $2.1 trillion, or 5.5% to 5.8% of GDP, nearly double the stated target. The Congressional Budget Office projects deficits remaining above 5% of GDP through at least 2029, constrained by defense spending and the administration’s tax cut priorities. Republicans have made extending Trump’s tax cuts their priority, making major fiscal consolidation unlikely in the near term.
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