CBO: Trump Bill Increases Deficit, Cuts Social Programs

The Congressional Budget Office (CBO) estimates that President Donald Trump's major legislative package, now advancing through Congress, would cut taxes by $3.7 trillion but increase the federal deficit by $2.4 trillion over the next decade. The bill would also reduce federal spending by $1.3 trillion, result in 10.9 million additional uninsured people—including 1.4 million undocumented immigrants—and reduce monthly SNAP participation by 4 million. Critics, including some Republican lawmakers and Elon Musk, have denounced the bill as fiscally reckless. The Trump administration and GOP leaders dispute the CBO's findings, claiming revenue gains are underestimated. Separately, the CBO projects that Trump's recent tariffs, if sustained until 2034, could reduce the federal deficit by $2.8 trillion but would slightly slow economic growth and raise inflation. Trump is urging Congress to pass the bill before the Fourth of July.