We present new estimates of the budget outlook, incorporating the impact of the recent debt-limit deal and the latest projections by the Congressional Budget Office and the Medicare and Social Security Trustees.Although the official budget figures have improved relative to a year ago (as a result of the debt-limit deal and lower interest rate projections), realistic budget projections show that the medium-term outlook remains troublesome and the long-term outlook remains unsustainable. Policymakers and the public will eventually be forced to address these issues.Addressing them soon rather than later will allow for more reasonable and gradual adjustments.