One Big Beautiful Bill Act Projected to Drive U.S. Deficit Increase
(MENAFN) The One Big Beautiful Bill Act, enacted on July 4, is projected to add $3.39 trillion to the U.S. deficit between 2025 and 2034, according to a Congressional Budget Office (CBO) report released Monday.
This latest deficit forecast exceeds the CBO’s earlier June estimate of $3.25 trillion, which was published just before Congress approved the legislation.
The increase in the deficit is attributed to a $1.1 trillion reduction in direct spending offset by a $4.5 trillion drop in federal revenues, the CBO explained.
This sweeping tax and budget legislation aligns closely with President Donald Trump’s policy priorities, featuring significant tax cuts alongside heightened funding for the military and border security initiatives.
However, the bill has ignited sharp debate among lawmakers and citizens across the political and economic spectrum.
The staggering projected impact on the federal deficit has sparked alarm both domestically and internationally.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, estimates the legislation will boost U.S. borrowing by $4.1 trillion once interest costs are factored in.
"It's still hard to believe that policymakers just added 4 trillion dollars to the debt. Many supporters of this law have spent months or years appropriately fuming about our unsustainable fiscal situation. But when they actually had an opportunity to fix it, they instead made it 4 trillion dollars worse," MacGuineas said in a statement Monday.
By mid-2025, the U.S. national debt has surpassed $36.2 trillion, with the debt-to-GDP ratio exceeding levels last seen during World War II.
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