A new estimate from the Congressional Budget Office (CBO) projects that a Republican bill tied to President Donald Trump’s domestic agenda will add $2.4 trillion to the national debt over the next decade. This revised figure is slightly more than the previous estimate of $2.3 trillion. The updated score accounts for last-minute changes made to satisfy dissenting GOP members before the House passed the legislation last month, including an increased state and local tax (SALT) deduction and expedited Medicaid work requirements.
Overall, the CBO and the Joint Committee on Taxation estimate that the legislation will decrease revenues by $3.7 trillion while reducing net spending by $1.3 trillion, culminating in a total of $2.4 trillion in new debt. Furthermore, the CBO predicts that by 2034, approximately 10.9 million more people could be uninsured due to spending cuts affecting Medicaid and the Affordable Care Act.
The bill is currently under scrutiny as it moves to the Senate, where Republican leaders aim to pass a revised version by July 4. However, the specifics of any changes and their potential effect on the deficit remain uncertain. This financial assessment challenges assertions from the White House and GOP leaders that the bill would not negatively impact the national debt, as they have focused on the spending aspects while minimizing the implications of tax cuts and spending extensions on the long-term budget. The situation has also drawn criticism from former adviser Elon Musk, who labeled the bill a “disgusting abomination” in response to the anticipated increase in national debt.
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