Large structural budget deficits, projected by the Congressional Budget Office at $1.9 trillion for fiscal year 2026 and rising thereafter, continue to drive steady increases in gross federal debt, which stood near $39.9 trillion in mid-August 2026. Net interest costs and mandatory spending growth outpace revenue collections under current law, while the 2025 One Big Beautiful Bill Act added net deficit pressure through tax extensions, defense and border funding increases, and other provisions even after partial offsets. The statutory debt limit was raised to $41.1 trillion in that legislation, pushing the next potential constraint into 2027. Absent major new fiscal legislation or an unexpected economic contraction that sharply alters revenue or outlays, debt held by the public is on track to climb from roughly 101 percent of GDP in 2026 toward higher levels in subsequent years. Midterm election outcomes and fiscal year 2027 appropriations debates represent the main near-term variables that could influence the trajectory before the end of 2026.