Why Trump’s Big Bill Turns ‘B’ into Bankruptcy – Unveiling Its True Costs

House Resolution 1 (HR1), which some label as the “Big Beautiful Bill” or “Big Bankruptcy Bill,” is a contentious topic. Understanding HR1 requires a look at America’s growing debt.

In fiscal year 2024, the U.S. faced a staggering $1.8 trillion deficit, meaning the government spent way more than it earned. Approximately 37% more, to be exact. Interest on our national debt ballooned to $882 billion that year, just to keep up with what we owe. To highlight the gravity, net interest costs have nearly tripled since 2020. It’s now the second-largest expense for the federal government, right after Social Security.

With about 341 million people in the country, every individual’s share of the federal debt is over $105,000. And things are only getting worse. Recently, Moody’s downgraded America’s credit rating from Aaa to Aa1, following similar moves by Standard & Poor’s and Fitch. This downgrade increases interest rates for mortgages and treasury bills, leading to devaluation of the dollar.

For instance, in a six-month period, the dollar’s value dropped by 11% against the Euro. This drop means traveling to Europe or buying imported goods will cost Americans more. When the dollar weakens, inflation rises, causing overall prices to increase.

The issues don’t stop there. House Majority Leader Steve Scalise claims HR1 supports President Trump’s agenda and provides relief for struggling families. But many Republican members didn’t campaign on raising the national debt by trillions during Trump’s tenure. Despite this, they recently voted to increase the debt ceiling by $5 trillion, pushing problems further down the road.

Some of the bill’s provisions also appear to benefit a select few through substantial tax breaks, making many question if this is fair to the broader population. For example, there’s an expansion for a tax break benefiting venture capitalists, and a specific deduction for businesses tied to Alaskan fishing.

The trajectory of U.S. debt is alarming. It has skyrocketed from $3.2 trillion in 1990 to over $36 trillion now. If HR1 passes, experts warn the debt could reach $43 trillion by 2028. This echoes a time a decade ago when Tea Party Republicans made strides in reducing a $1.4 trillion deficit down to $439 billion in 2015. At that time, there was a glimmer of hope for fiscal responsibility.

Today, however, instead of prudent measures, HR1 promotes increased spending. Experts like former Secretary of Defense James Mattis have expressed that a country unable to manage its debt risks its military capabilities. This sentiment was echoed by other national security leaders, emphasizing that unchecked debt is a genuine threat to national security.

In short, history shows debt affects a nation’s strengths. In the past, poor fiscal management led to vulnerabilities that were exploited. Today, the stakes are even higher, with global threats looming. As America debates HR1, the path forward is uncertain, and the stakes are high for every citizen.



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