Senate Senate panel highlights debt concerns as Iran expenses mount by Max Rego - 03/11/26 6:55 PM ET by Max Rego - 03/11/26 6:55 PM ET Share ✕ LinkedIn LinkedIn Email Email NOW PLAYING Senators from both sides of the aisle and witnesses expressed alarm at the rising national debt during a Senate Finance subcommittee hearing on Wednesday, warning that future generations of Americans will pay the price for bloated budgets.  “Although both sides claim to be concerned about our dire fiscal situation, neither side, and let me emphasize that, neither side has demonstrated a genuine desire to seriously address it,” said Sen. Ron Johnson (R-Wisc.), the chair of the Subcommittee on Fiscal Responsibility and Economic Growth. The nonpartisan Congressional Budget Office (CBO) projected last month that the federal budget deficit will grow from $1.9 trillion this year to $3.1 trillion by 2036. In 2026, the CBO projects that the deficit will be 5.8 percent of the country’s gross domestic product (GDP), but in a decade, it will be 6.7 percent of GDP. Dr. Phillip Swagel, the director of the CBO, said those projected deficits are “historically unusual,” given that the office forecasts that unemployment will remain below 5 percent over the next 10 years.  “We are not running a large deficit in response to an economic need but because of policy choices,” remarked Martha Gimbel, the executive director of the Budget Lab at Yale University. Sen. Tina Smith (D-Minn.), the ranking member on the subcommittee, said during the hearing that the nation’s debt may not be “top of mind” for many Americans, given their own financial concerns. “Every day, folks are struggling to figure out how to pay rent and put food on the table and pay for their pills and their doctor visits, and the national debt can feel a bit abstract in that day-to-day struggle,” the Minnesota Democrat noted. But a 2025 report from the Yale Budget Lab noted that even a 1 percent increase in the deficit can drive up inflation and borrowing costs on a car, a home or to start a business. Gimbel referenced those downstream effects Wednesday, adding that they arise from the debt pushing up interest rates. As for how Congress and the federal government writ large can reduce the debt, witness Maya MacGuineas had a number of ideas. MacGuineas, the president of the Committee for a Responsible Federal Budget think tank, stressed her view that Social Security must be reformed “immediately.”  In response to questioning from Sen. Peter Welch (D-Vt.), she also noted that reforming the nation’s health care system as a whole would help drive down the deficit — the federal government spent $1.9 trillion on health care programs and services in fiscal 2024, according to health policy research group KFF . “Health care reform is probably the area with the most potential, where we could generate savings and still actually protect the beneficiaries,” MacGuineas added. The hearing came on day 12 of the U.S.-Israeli war with Iran. Over the first two days of the conflict alone, the Pentagon spent roughly $5.6 billion in munitions , a congressional source familiar with the matter told The Hill on Monday. Sen. Elizabeth Warren (D-Mass.) raised that high price tag during the hearing, acknowledging that while “all of us want to make sure that our troops have whatever they need to be safe,” the Defense Department is “swimming in money” and could ask Congress for more as the conflict drags on.  “It seems to me, that when we’re talking about money here, that the way that we can save the most money would be to stop bombing Iran now,” the Massachusetts Democrat added. “And, just as a side benefit, we could also save a lot of lives.” Filip Timotija contributed reporting. Add as preferred source on Google Tags Elizabeth Warren Peter Welch Phillip Swagel Ron Johnson Tina Smith Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Share ✕ LinkedIn LinkedIn Email Email More Senate News See All Senate Mullin confirmation hearing to lead DHS formally scheduled by Sarah Davis 12 minutes ago Senate  /  12 minutes ago