The U.S. House of Representatives passed President Donald Trump’s $3.4 trillion tax and spending package, known as the “Big Beautiful Bill,” which is projected to add trillions to the national debt. According to the Congressional Budget Office (CBO), the bill will add $3.4 trillion to the national debt over the next decade, although some analyses suggest the figure could be significantly higher when interest costs and other economic factors are considered.5 The Senate version of the bill raised the U.S. borrowing limit by $5 trillion, giving the government more room to spend, but also potentially worsening the national debt, which has already jumped from $23 trillion in 2020 to over $36 trillion.2 A report from the Cato Institute warned that, accounting for factors like interest rates and economic growth, the bill could add up to $6 trillion to the deficit over the next 10 years.1
- CBO Estimate: The nonpartisan Congressional Budget Office estimates the bill will add $3.4 trillion to the deficit over the next decade, with some projections suggesting it could reach $4 trillion when borrowing costs are factored in.3
- Cato Institute Analysis: The libertarian think tank warned that the bill could add up to $6 trillion to the national debt over 10 years, citing budget gimmicks that mask its true cost.1
- Senate Borrowing Limit Increase: The Senate’s version of the bill raised the U.S. borrowing limit by $5 trillion, which could exacerbate concerns over additional bond supply and dwindling demand for U.S. Treasuries.2
The bill now heads to Trump's desk for a signature, marking a significant legislative victory for the Trump administration.
