The Congressional Budget Office’s latest forecasts are out on the U.S. government’s deficit situation — and they don’t look very good.

WASHINGTON, Feb 11 (Reuters) - The U.S. government posted a $95 billion budget deficit in January, down $34 billion or 26% from a year earlier as revenue gains including customs duties outpaced growth in outlays,

The U.S. national debt is set to break a World War II record by 2030, reaching 108% of GDP as the Congressional Budget Office warns of mounting fiscal challenges ahead.

The U.S. budget deficit is expected to soar to $3.1 trillion by 2036 from $1.9 trillion in fiscal 2026, according to the latest forecast from the Congressional Budget Office released on Wednesday. And this has the potential to put upward pressure on yields in the bond market over time.

The budget deficit will widen over the next decade as interest costs consume an increasing share of spending, the CBO said in a forecast that highlighted the country’s long-run fiscal challenges.

That’s never fun to be able to cut stuff. … But there’s probably stuff that’s going to have to be scaled back or cut.”

Enrollment is about 1,400 students below projections for this school year, reducing revenue by about $5 million.