The U.S. deficit is expected to climb over the next 10 years with higher interest payments set to account for a historic share of government spending, the Congressional Budget Office said on Wednesday.

Why it matters: New projections from the nonpartisan agency show deficits jumping from $1.6 trillion this year to $2.6 trillion in 2034, alongside a slightly less gloomy prediction for the nation's fiscal health than previously estimated.

By the numbers: The deficit will be 5.6% of GDP this year before jumping to 6.1% in 2025, and ultimately holding at that level in 2034.

The nonpartisan Congressional Budget Office released a review of the House Republicans' plan to provide $14.3 billion in aid to Israel by cutting Internal Revenue Service funding by that amount, saying it will raise the U.S. budget deficit in 2024 by $12 billion.

The data released by the CBO on Wednesday estimated that cutting funding of President Joe Biden's massive IRS agent staffing expansion would decrease tax revenues collected from Americans by $26 billion.

Congressional Budget Office Director Phillip Swagel revealed on Wednesday that the federal government could “run out of funds” between July and September.

President Joe Biden’s plan to forgive student loan debt for many borrowers will cost roughly $400 billion, according to a Congressional Budget Office estimate released on Monday, rekindling a debate over the cost of student debt forgiveness and whether the plan will accelerate inflation.

The CBO estimates Biden's student loan debt forgiveness program will cost $400 billion.

The CBO also estimated Biden’s decision to pause student loan payments through the end of the year—extending a pause that began in 2020—will cost another $20 billion.

President Joe Biden's plan to forgive $10,000 in federal student debt for most borrowers will cost the government about $400 billion, the nonpartisan Congressional Budget Office said in an estimate released Monday.

The CBO’s evaluation of the administration's policy said the price tag is "a result of the action canceling up to $10,000 of debt issued on or before June 30, 2022."

The Biden administration's plan to forgive a significant portion of federal student loans will cost roughly $400 billion, according to new estimates from the Congressional Budget Office.

In a letter to Sen. Richard Burr (R-NC) and Rep. Virginia Foxx (R-NC), the senior Republicans on the Senate and House education committees, Phillip Swagel, the director of the CBO, estimated that the student loan plan announced by the Biden administration last month will cost about $400 billion but that the estimate was "highly uncertain."

President Joe Biden's Build Back Better Act is likely to end up costing taxpayers about double what the official price tag suggests, and much of that hidden cost will end up being added to the national debt.

That's the conclusion from two independent analyses of the proposal released in recent weeks. Both rely on a key assumption that did not figure into the Congressional Budget Office's (CBO) analysis of the bill: that the Build Back Better plan's various policies will be in place for at least the next 10 years.

U.S. economic growth will recover “rapidly” and the labor market will return to full strength quicker than expected thanks to the vaccine rollout and a barrage of legislation enacted in 2020, according to a government forecast published Monday.

Gross domestic product, or GDP, is expected to return to its pre-pandemic size by mid-2021 and the labor force is forecast to rebound to its pre-pandemic level in 2022, the nonpartisan Congressional Budget Office said.

The Congressional Budget Office said it sees the U.S. economy recovering from the coronavirus pandemic much faster than previously expected -- an upgrade that potentially complicates prospects for President Joe Biden’s $1.9 trillion relief plan.

The economy will grow in 2021 at its fastest rate in 17 years as vaccines are administered across the country and life returns to normal, the Congressional Budget Office projected Monday.

The CBO expects that the U.S. gross domestic product will continue to expand "rapidly over the coming year, reaching its previous peak in mid-2021 and surpassing its potential level in early 2025," with an anticipated annual growth rate of 2.6% over the next five years.

Annual growth is expected to hit 3.7% in 2021, which would be the strongest number since 2004.