The ‘One Big Beautiful Bill Act’ to Add More Deficit by 2034: CBO
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July 22, 2025 Hour: 8:01 am
The deficit results from a decrease in direct spending of US$1.1 trillion and a decrease in revenues of US$4.5 trillion.
On Monday, the Congressional Budget Office (CBO) released a report showing that the “One Big Beautiful Bill Act,” which was signed into law on July 4, would add US$3.39 trillion to the U.S. deficit from 2025 to 2034.
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The latest estimate by CBO is higher than its estimate of 3.25 trillion U.S. dollars made at the end of June, shortly before the act passed Congress. The increase in the deficit is estimated to result from a decrease in direct spending of US$1.1 trillion and a decrease in revenues of US$4.5 trillion.
The tax and budget act represents U.S. President Donald Trump’s agenda policies, including tax cuts and funding boosts for military expenditure and border security. The mega act is highly controversial among lawmakers and Americans from different parties or income groups.
The act’s huge effects on the U.S. deficit in the coming years raised concerns from home and abroad. The act is estimated to increase U.S. borrowing by 4.1 trillion dollars, with interest included, according to Maya MacGuineas, president of the Committee for a Responsible Federal Budget.
“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,” said MacGuineas.
“But when they actually had an opportunity to fix it, they instead made it 4 trillion dollars worse,” the president of the Committee for a Responsible Federal Budget added.
As of mid-2025, the U.S. national debt stands at over 36.2 trillion dollars, and the debt-to-GDP ratio has exceeded its peak during World War II.
teleSUR/ JF
Source: Xinhua