Trump’s ‘Great, Impressive Plan’ might raise national debt by $3 trillion, CBO reports

Concerns Over Trump’s Proposed Legislation Increase National Debt

Recent estimates indicate that President Donald Trump’s proposed “Big Beautiful Building” legislation could lead to a significant rise in national debt, potentially by $3 trillion or up to $5 trillion if made permanent. The non-partisan Congressional Budget Office (CBO) anticipates that it may add more than $2.4 trillion to the deficit before accounting for interest, as reported by the Committee for a Responsible Federal Budget (CRFB).

As of Wednesday, the U.S. national debt stands at $36.2 trillion, with a deficit of $1 trillion when federal expenditures surpass income, according to the Treasury Department. The expansive spending bill being discussed within a Republican-majority Congress aims to tackle several vital issues such as tax policy, immigration, defense, energy production, and coordination of public assistance programs like SNAP and Medicaid.

Resistance from Within the Party

The proposal is facing pushback from some Republican senators, concerned about the implications of increasing the national debt. The CRFB noted that, based on CBO assessments, the bill passed by the House includes a tax cut of around $5.3 trillion, which is partially counterbalanced by a $2.9 trillion increase in revenue and various spending cuts. However, most significantly, they cautioned that the Ways and Means Committee plan would elevate the deficit by $3.8 trillion, while policies from the Energy and Commerce Committee could reduce the deficit by $1.1 trillion.

The OBBBA (One Big Beautiful Bill Act) is critiqued by the CRFB as potentially leading to severe financial consequences, especially if the short-term provisions are extended as proposed. Concerns have been raised that it could exacerbate inflation, push interest rates higher, complicate tax regulations, and undermine market confidence, ultimately hindering long-term economic growth.

The Senate has been urged to take a more responsible approach to the bill’s considerations.

Price Tag Estimates on the Tax Package Rise

Furthermore, recent calculations have brought the House GOP tax package’s estimated price tag up to $3.94 trillion. Although the bill has passed in the House, there is notable opposition from lawmakers like Senator Rand Paul of Kentucky. Paul remarked, “We’ve never actually raised our debt ceiling without achieving some kind of goal,” reiterating skepticism regarding the claim that the debt wouldn’t directly increase.

Democrats have voiced serious concerns, suggesting that the proposed changes could result in the loss of around 51,000 lives due to alterations in federal health policies and legal settlements. Notably, Elon Musk, who once led Trump’s Department of Government Efficiency, has also expressed his opposition to the bill.