Stephen Milan, the chairman of the White House Economic Advisors Council, raised concerns on Thursday regarding the potential economic fallout if President Trump’s domestic policy bill isn’t passed by the specified deadline.
In a conversation with NewsNation’s Blake Burman about “The Hill,” Milan cautioned that if Congress doesn’t approve the so-called “big beautiful bill” by July 4th, it could lead to a recession in the U.S.
Despite the current confidence among markets, businesses, and CEOs regarding Congress’s ability to finalize legislation, Milan warned that a decline in this trust could negatively impact the economy. He stated, “If we start worrying about a potential $4 trillion tax increase, we might see businesses hold back on investments, postpone hiring, and delay economic decisions.”
He further elaborated.
When pressed about the likelihood of a recession should the bill stall or if the deadline were extended, Milan confirmed, “Ah, absolutely.”
“You can’t roll out the largest tax hike in history without considering the consequences; Congress must act to prevent the economy from sliding into a recession,” he explained.
Milan warned that if the “big and beautiful bills” don’t pass or deadlines are missed, it could lead to “millions of people” losing their jobs, and around 9 million might lose health insurance.
“It’s going to be a disaster; everyone understands the critical importance of getting this bill passed,” he added.
Some economists have expressed doubt about whether the Senate version of the legislation can deliver promised economic growth and fiscal responsibility. Tax experts have pointed out that the measures intended to support working Americans might not actually stimulate growth. Moreover, the bill’s cost could range from $4 trillion to $5 trillion over a decade, factoring in all proposed tax cut extensions.
The White House remains committed to presenting a significant settlement package by July 4th.
“We expect the bill to be on the president’s desk for signing by July 4th,” spokesperson Carolyn Leavitt stated on Thursday. The House has already approved a version of the bill, which is now awaiting Senate approval. It will need to be passed by the House again before Trump can sign it.
