The Congressional Budget Office (CBO) has released a dynamic analysis of the House-passed megabill, projecting that the legislation would add $2.8 trillion to the U.S. deficit over a decade when considering its effects on interest rates, inflation, and economic growth.
This figure surpasses the previously estimated $2.4 trillion, which did not account for the economic effects of the policy package. The new analysis highlights that while the bill would modestly boost economic growth by 0.5 percent annually, the costs of higher interest rates would significantly increase national debt payments, adding an estimated $440 billion over a decade.
Senate Republicans are working to finalize changes to the House-passed version of the ‘One Big Beautiful Bill Act’ to send to President Trump by July 4, aiming to enact his major campaign promises. Meanwhile, Democrats are leveraging the CBO’s findings to critique the policy package, with Pennsylvania Rep. Brendan Boyle calling the results a disappointment for Republicans who hoped tax breaks for billionaires would pay for themselves.