U.S. fiscal trajectory and debt

CBO reports U.S. government borrowed $1.8 trillion in FY2026, $431B in July alone, heading toward $2T despite no recession. Gross debt approaching $40T. This massive fiscal trajectory raises concerns about long-term sustainability, market reactions, and policy debates. Implications for Fed independence, inflation, and national security. New: Senate passes CR 90-6 funding government through Dec 11, but strips IIJA advanced appropriations for transit/rail; House version differs (Dec 4, no full transport funding), reconciliation needed before Sept 30 deadline.