WASHINGTON (AP) – President Donald Trump’s significant bill moves through the council. An analysis released Wednesday by the nonpartisan Congressional Budget Office discovered that it would cut taxes by $3.75 trillion but would also raise the deficit by $2.4 trillion over the following decade.
The CBO also projects an increase of 109 million individuals without health insurance by 2034 as a result of the bill.
The package is expected to reduce federal spending by nearly $1.3 trillion over this time frame, according to the Budget Office.
“When Democrats are in charge, Republicans lament their debts, yet they ballooned them when they held power,” remarked Pennsylvania Rep. Brendan Boyle, the leading Democrat on the House Budget Committee.
“In Elon Musk’s words,” Boyle stated, disparaging remarks regarding a former billionaire Trump aide, “This bill is ‘unpleasant and hateful.’”
Trump Urges Congressional Action
This analysis arrives at a pivotal moment in the legislative process as Trump is urging Congress to finalize the bill for his signature by July 4th. The CBO’s task, which has served for decades as the official scorekeeper for Congressional legislation, is for legislators to understand the budgetary impact of a comprehensive 1,000+ page package.
Prior to the release of the CBO report, White House and Republican leaders criticized the Budget Office for a preemptive effort aimed at undermining trust in its findings.
President Donald Trump will speak at the event on Wednesday, April 2, 2025, to announce new tariffs in Washington at the Rose Garden in the White House. (AP Photo/Mark Schiefelbein, file)
Republicans Criticize CBO
White House press secretary Caroline Leavitt claimed the CBO was “historically incorrect,” while Senate majority leader John Toon declared the CBO as “flat and inaccurate,” stating it underestimated potential revenue growth. In 2017, during Trump’s initial tax cut. Last year, the CBO reported receipts were $1.5 trillion, or 5.6% more than expected due to the “surge of inflation” during the COVID-19 pandemic in 2021.
Leavitt also insinuated that CBO workers harbor bias, despite the organization imposing strict ethical rules—including limitations on campaign contributions and political activities—to ensure neutrality and fairness.
“Whenever it was time to provide a forecast about economic growth, they were consistently wrong,” asserted Rep. Steve Scalise of Louisiana at a press conference.
When asked if it might be time to disband the CBO, Scalise did not dismiss the notion. “I think it would be very important to raise these concerns, given that the CBO has misjudged fundamental issues related to inaccurate estimations,” Scalise remarked. “Economic growth has been the Achilles’ heel.”
In addition to the bill’s financial implications, the CBO’s earlier estimations indicated approximately 4 million fewer individuals would receive food stamps each month due to the law’s proposed alterations, affecting the Supplemental Nutrition Assistance Program, known as SNAP.
What’s in the Bill?
Affectionately termed the “Big Beautiful Act” after the president’s favored phrase, this bill emerges as a paramount objective for Republicans who hold both the House and Senate.
Democrats have branded it Trump’s “big and ugly bill.”
The package seeks to extend individual income tax credits implemented in 2017, which are set to lapse in December if Congress fails to intervene. There are no hidden taxes. It also proposes a substantial allocation of $350 billion towards border security, deportation, and national security.
To compensate for the lost revenue, Republicans aim to curtail federal spending, proposing the elimination of the Green Energy Tax Credit that was introduced during President Joe Biden’s tenure. New work requirements for certain adults up to age 65 on Medicaid and SNAP are anticipated to commence in December 2026, leading to reduced expenditure for those programs.
The package also proposes a $4 trillion increase in national debt limits, which currently stand at $36 trillion. The Treasury predicts that debt limits will have to be raised this summer.
CBO’s Commitment to Fairness
Now in its fiftieth year, the CBO was established by law after Congress sought to reinforce its management as detailed in the Budget Process, creating a new office as an alternative to the White House’s Office of Management and Budget.
The CBO, staffed by approximately 275 economists, analysts, and other personnel, maintains its goal of supplying Congress with neutral and objective data regarding budgetary and economic challenges.
The current director, Philip Swagel, served as Treasury Secretary under President George W. Bush and was reappointed in 2023 for a four-year cycle.
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Associated Press contributors Kevin Frecking and Joey Capelletti contributed to this report.
Source: apnews.com