Trump’s ‘Big, Beautiful Bill’: How It Could Increase National Debt by $3.4 Trillion, According to Budget Office

In July, President Donald Trump signed a significant bill into law. This legislation is expected to add roughly $3.4 trillion to the U.S. national debt over the next ten years, according to a report from the nonpartisan Congressional Budget Office CBO.

The law will impact health insurance coverage, with projections suggesting that by 2034, around 10 million more people may lack health insurance. This shift comes after a tight vote in the Senate, where the bill passed 51-50, followed by a narrow House vote of 218-214. The law was signed on July 4.

This package extends tax cuts from 2017 and introduces new tax deductions for tips and overtime pay for the next four years. Additionally, it allocates funds for military spending and Trump’s immigration policies, but it offsets some of this with cuts to Medicaid and food aid programs like SNAP. Overall, while there are net spending cuts of $1.1 trillion, these cuts are overshadowed by a $4.5 trillion reduction in revenue.

Many Americans are unhappy with the bill, seeing it as a tax break for the wealthy at the expense of essential services for the working class. Recent surveys show a lack of support for the package. Democrats are particularly vocal about its implications, arguing it favors the rich.

In contrast, some Republican leaders view the bill positively, framing it as a benefit for working families. House Speaker Mike Johnson emphasized that it will lead to higher wages and greater economic growth, believing voters will appreciate it in the upcoming midterms.

Interestingly, the CBO’s analysis also indicates that the law’s changes to the Affordable Care Act may slightly lower average premiums by about 0.6% by 2034.

This legislation shows how deeply political decisions impact everyday lives. As we await the midterm elections, it will be interesting to see how these changes resonate with voters and shape future policies.

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