Donald Trump’s sweeping new legislative package, dubbed his “big, beautiful bill,” is set to add $3.4 trillion to the national debt over the next decade, according to a damning report by the non-partisan Congressional Budget Office (CBO).
Signed into law on July 4, after passing the House by a narrow 218–214 margin, the 900-page bill includes extended tax cuts, increased military spending, and significant funding for immigration enforcement. It also makes cuts to social programs like Medicaid, SNAP, and clean energy initiatives.
The CBO’s report, released Monday, outlines the fiscal impact of the bill, noting: “CBO estimates that Public Law 119-21 will result in a net increase in the unified budget deficit totaling $3.4 trillion over the 2025–2034 period… from a decrease in direct spending of $1.1 trillion and a decrease in revenues of $4.5 trillion.”
Additionally, the law is expected to leave 10 million more Americans without health insurance by 2034. Despite unanimous opposition from Democrats, Republicans pushed the bill through, arguing that tax breaks from Trump’s first term were set to expire this December. The new legislation locks in those rates and adds $4.5 trillion in tax cuts, including deductions for tips, overtime, and auto loan interest.
Other provisions include a $6,000 deduction for seniors earning under $75,000, and an increase in the child tax credit from $2,000 to $2,200. However, the wealthiest Americans stand to gain an additional $12,000 annually, while the poorest could lose $1,600, largely due to cuts in healthcare and food assistance.
The bill also allocates $350 billion toward Trump’s border and national security agenda — funding more migrant detention beds, a border wall extension, and hiring 10,000 new ICE officers with $10,000 signing bonuses. Trump’s stated aim: deport one million people per year.
The North Carolina Republican JD Vance defended the bill at a rally, highlighting modest expansions to childcare tax credits, saying Americans will benefit. However, the CBO estimates that low-income households will save about $150 in taxes next year, while the average annual cost of childcare sits at $13,128 per child.
Public reaction has been largely negative, and Democrats plan to use the bill as a key issue in upcoming congressional races. Senate Minority Leader Chuck Schumer called it “the ultimate betrayal of the American people”, warning that citizens will “realize it when they lose their jobs, see their bills go up, or they lose their health insurance.”
Still, House Speaker Mike Johnson predicted the opposite outcome. “This is a bill that was written for hardworking Americans,” he told NBC News. “They’ll have higher wages, more opportunity… and the border will be secure.” He added, “I have no concerns at all” about GOP losses in the 2026 midterms.