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President Donald Trump's proposed spending bill aims to cut taxes by $3.7 trillion but will increase the federal deficit by $2.4 trillion over the next decade, according to the Congressional Budget Office (CBO). The CBO's analysis, released on Wednesday (June 4), highlights significant fiscal impacts, including a reduction in federal spending by nearly $1.3 trillion and an increase of 10.9 million people without health insurance by 2034.
The bill, known as the "One Big Beautiful Bill Act," is a priority for Republicans who control both the House and Senate. It seeks to extend individual income tax breaks from 2017, add new tax cuts, and increase border security spending by $350 billion. However, the proposed changes to Medicaid and other programs could result in 8.6 million people losing health care and 4 million fewer receiving food stamps monthly.
Despite the CBO's findings, the White House and Republican leaders criticized the agency's analysis, citing past inaccuracies. White House Press Secretary Karoline Leavitt argued that the CBO underestimated revenue from Trump's 2017 tax cuts. Meanwhile, Democrats strongly oppose the bill, labeling it "Trump's big, ugly bill."
The legislation also proposes a $4 trillion increase to the nation's debt limit, which currently stands at $36 trillion. The CBO's report comes as Congress works to finalize the bill by July 4. As the legislative process continues, the CBO's role as an objective budgetary analyst remains crucial for lawmakers evaluating the bill's impact.