CBO: One Big Beautiful Bill Could Add $2.4T to Deficit
U.S. President Donald Trump’s Big Beautiful Bill Act could add $2.4 trillion to the federal deficit over the next ten years, according to an assessment published by the nonpartisan Congressional Budget Office (CBO) on Wednesday. The House of Representatives has already approved the sweeping budget package by a tight vote of 214 to 215 and it has now passed onto the Senate, where several Republican lawmakers are seeking revisions to the legislation.
The so-called reconciliation bill calls for a range of tax cuts amounting to $3.7 trillion, including a temporary pause of taxes on tips and overtime pay. At the same time, it would slash $1.2 trillion in spending across federal programs such as Medicaid and the Supplemental Nutrition Assistance Program (SNAP).
The CBO estimates that as it stands, the act would leave some 10.9 million people without health insurance by 2034, including 1.4 million who are in the U.S. without permanent legal status in state-funded programs. This could rise to 16 million people due to expiring tax credits and new Affordable Care enrollment requirements.
The following chart shows the estimated cumulative federal deficit caused by the bill that passed the House last month. According to CBO calculations, a total of $1.8 trillion could be added to the federal deficit between 2025 and 2029, rising to over $2.4 trillion by 2034.
If the bill is changed by the Senate it will need to return to the House for a second vote. Trump has said he wants the bill on his desk by July 4.