Politics

Trump-Backed GOP Bill Could Add $2.4 Trillion to U.S. Debt: CBO

By Jake Beardslee · June 4, 2025

WASHINGTON — A major Republican bill supporting President Donald Trump’s domestic policy agenda is expected to increase the national debt by $2.4 trillion over the next decade, according to the latest estimate from the nonpartisan Congressional Budget Office (CBO).

The bill, led by House Speaker Mike Johnson (R-La.) and Senate Majority Leader John Thune (R-S.D.), includes expanded tax cuts and changes to Medicaid work requirements. The updated CBO analysis slightly surpasses the previous projection of $2.3 trillion in additional debt.

The CBO and the Joint Committee on Taxation estimate that, over ten years, the legislation would reduce federal revenue by $3.7 trillion and offset some of that loss with $1.3 trillion in spending cuts. However, the net result would still be a significant increase in deficit spending.

The bill also includes revisions aimed at gaining support from GOP holdouts. These changes include raising the state and local tax (SALT) deduction cap and accelerating the implementation of Medicaid work requirements.

Another key projection in the report is the anticipated rise in uninsured Americans. The CBO estimates that 9.1 million more people will lack health coverage by 2034, with 7.8 million of those losing coverage due to Medicaid policy changes.

While Republican leaders have claimed the legislation would not worsen the federal deficit, the CBO’s findings contradict those assertions. Critics, including Elon Musk, a former adviser to Trump, have condemned the proposal. Musk labeled the bill a “disgusting abomination” on Tuesday in a post on X, citing the projected debt increase.

The legislation now moves to the Senate, where Republican leaders hope to finalize revisions and pass it by July 4. The fiscal impact of any future amendments remains uncertain.