The expansive Republican bill aimed at advancing President Donald Trump’s domestic agenda is expected to increase the national debt by $2.4 trillion over the next decade, according to a new estimate from the nonpartisan Congressional Budget Office (CBO). This is a slight increase from the previous version, which was projected to add $2.3 trillion.
The updated estimate accounts for last-minute changes GOP leaders made to secure enough support for the bill’s passage in the House. These revisions include a more generous state and local tax (SALT) deduction and an earlier start for Medicaid work requirements.
Over ten years, the CBO and the Joint Committee on Taxation project that the bill would reduce federal revenue by $3.7 trillion while cutting spending by $1.3 trillion, resulting in a net increase of $2.4 trillion to the deficit. The legislation would also leave an estimated 9.1 million more people without health insurance by 2034, primarily due to changes in Medicaid eligibility.
The bill now heads to the Senate, where Republicans aim to pass a revised version by July 4, though the impact of potential changes remains uncertain.
The CBO’s findings contradict Republican and White House claims that the bill would not increase the debt.
Meanwhile, former Trump adviser Elon Musk harshly criticized the bill, calling it a “disgusting abomination” for its contribution to the national deficit.
