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Dec 25, 2023

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U.S. Deficit as % of GDP

Congress Blog · The Hill

Congress Should Adopt a 3% Deficit-to-GDP Target

Reps. Bill Huizenga (MI-4) & Scott Peters (CA-50) · March 2026

The Bipartisan Fiscal Forum is calling on Congress to adopt a 3% deficit-to-GDP target to stabilize the national debt and prevent it from growing faster than the economy. The proposal has drawn support from both the Obama administration and Treasury Secretary Scott Bessent, and aligns with the 2010 Simpson-Bowles Commission framework.

"If the U.S. doesn't cut the deficit to 3% of GDP, and soon, we risk facing an economic heart attack in the next three years." — Ray Dalio

The authors argue the target is neither too strict nor too lenient — aggressive enough to reassure markets, realistic enough to be achievable, and a meaningful first step toward a balanced budget.

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Source: The Hill · Opinion / Congress Blog

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