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national debt
CBO: Trump Law Will Add $3.4 Trillion to Deficit, Boot 10 Million Off Health Insurance
"The 'Big Beautiful Bill' will cost more than it saves, and working families stand to lose the most," said one union.
Jul 21, 2025
A nonpartisan federal agency estimated Monday that the Republican megabill signed into law by U.S. President Donald Trump on July 4 will add $3.4 trillion to the national deficit and cause at least 10 million people to lose health insurance over the next decade.
Warnings about the law's impact on the national debt and the healthcare of millions—particularly Americans on Medicaid—were prominent during the GOP effort to pass the budget reconciliation package by Trump's Independence Day deadline, but they did not stop Republicans in Congress from sending the so-called One Big Beautiful Bill Act to the president's desk.
When asked about the new Congressional Budget Office (CBO) analysis on Monday, White House Press Secretary Karoline Leavitt claimed the package was "a great bill for the American people," and "a fiscally responsible bill."
Meanwhile, critics of the law used the CBO release as an opportunity to call out the GOP. In a Monday floor speech, U.S. Senate Democratic Leader Chuck Schumer (D-N.Y.) highlighted that "the number of people who will lose health insurance could be higher—as many as 15 million," when accounting for other attacks, including on the Affordable Care Act (ACA), or Obamacare.
"It betrays every family worried about paying for groceries, the mortgage, the rent, prescription drugs—all going up because of Donald Trump and his administration."
"This finalized independent analysis from the CBO confirms it: Republicans' signature bill is the ultimate betrayal of the American people," Schumer declared. "It betrays every single family who will lose health insurance. It betrays our financial future. It betrays our children and grandchildren who will pay for these billionaire tax breaks, as the debt rises and rises."
"It betrays every family worried about paying for groceries, the mortgage, the rent, prescription drugs—all going up because of Donald Trump and his administration. And it betrays every rural community that benefits from good-paying energy jobs," he continued. "Republicans' supposed signature bill betrays everyone outside of the billionaire class and the special interests."
Sarah Lueck, vice president for health policy at the progressive think tank Center on Budget and Policy Priorities said on social media that "the latest CBO estimates make clear that the so-called 'Big Beautiful Bill' is anything but—it would cause widespread harm with more than $1 trillion in cuts to Medicaid and ACA marketplaces and higher costs for families trying to afford healthcare and groceries."
Lueck explained that the 15 million estimate factors in the 10 million due to health cuts in the package, 4.2 million because the legislation didn't extend expiring ACA tax credits, and more marketplace losses under Trump administration rule changes.
"The new law will take Medicaid away from people enrolled via the expansion if they don't meet a work requirement, harming parents, people with disabilities, and those with chronic illnesses. Protected groups and working people will lose coverage due to red tape," she warned. Due to the ACA expirations, Lueck added, "self-employed people, gig workers, early retirees, and low-wage workers are among those who will face steep hikes; some will end up uninsured."
The GOP package contains the biggest-ever cuts to not only Medicaid but also the Supplemental Nutrition Assistance Program (SNAP), noted Bobby Kogan, senior director of federal budget policy at another think tank, the Center for American Progress. He stressed that it will lead to "untold amounts of human suffering among the poorest people in the country."
U.S. House Budget Committee Ranking Member Brendan Boyle (D-Pa.) said in a statement that "President Trump and his Republican lapdogs can't hide from the truth. This final nonpartisan CBO estimate confirms their Big Ugly Law adds $3.4 trillion to the deficit to fund tax breaks for billionaires."
"It's one of the most expensive bills ever passed," he said. It's also one of the cruelest. More than 15 million Americans will lose their healthcare because of the law's assault on Medicaid and Republican plans to dismantle the ACA. I was proud to lead the fight against this disastrous law and will continue working to remind the American people who sold them out, and who's still fighting for them."
Unrig Our Economy campaign director Leor Tal responded to the CBO's findings by pointing to recent CNN polling that shows roughly 6 in 10 Americans oppose the new Republican law.
"It's easy to see why the vast majority of Americans oppose this pro-billionaire agenda," said Tal. "Republicans in Congress just jeopardized health coverage for millions of Americans, SNAP benefits for millions of children and families, and the existence of hundreds of rural hospitals across the country—all so they could give another tax break to the richest of the rich. We will continue to hold Republicans' feet to the fire for voting for this massive betrayal of American families."
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Trump’s Big, Ugly Bill Will Leave America Sick, Hungry, and More Unequal Than Ever
Never before in the history of this nation has such a large redistribution of income been directed upward, for no reason at all.
Jun 30, 2025
One of my objectives in this daily letter is to equip you with the facts you need. As the Senate approaches a vote on President Donald Trump’s giant “big beautiful” tax and budget bill, I want to be as clear as possible about it.
First, it will cost a budget-busting $3.3 trillion. According to new estimates by the nonpartisan Congressional Budget Office (CBO), the Senate bill would add at least $3.3 trillion to the already out-of-control national debt over a decade. That’s nearly $1 trillion more than the House-passed version.
Second, it will cause 11.8 million Americans to lose their health coverage. The Senate version would result in even deeper cuts in federal support for health insurance, and more Americans losing coverage, than the House version. Federal spending on Medicaid, Medicare, and Obamacare would be reduced by more than $1.1 trillion over that period—with more than $1 trillion of those cuts coming from Medicaid alone.
All told, this will leave 11.8 million more Americans uninsured by 2034.
If the bill now being considered by the Senate is enacted, 11.8 million Americans will lose their health insurance, millions will fall into poverty, and the national debt will increase by $3.3 trillion, all to provide a major tax cut mainly to the rich and big corporations.
Third, it will cut food stamps and other nutrition assistance for lower-income Americans. According to the CBO, the legislation will not only cut Medicaid by about 18%, it will cut Supplemental Nutrition Assistance Program (food stamps) by roughly 20%. These cuts will constitute the most dramatic reductions in safety net spending in modern U.S. history.
Fourth, it will overwhelmingly benefit the rich and big corporations. The CBO projects that those in the bottom tenth of the income distribution will end up poorer, while the top tenth will be substantially richer.
The bill also makes permanent the business tax cuts from the 2017 legislation, further benefiting the largest corporations.
Finally, it will not help the economy. Trickle-down economics has proven to be a cruel hoax. Over the last 50 years, Congress has passed four major bills that cut taxes: the 1981 Reagan tax cuts; the 2001 and 2003 George W. Bush tax cuts; and the 2017 Trump tax cuts. Each time, the same three arguments were made in favor of the tax cuts: (1) They’d pay for themselves. (2) They’d supercharge economic growth. (3) They’d benefit everyone.
All have been proven wrong. Here’s what in fact happened:
(1) Did the tax cuts pay for themselves?
No. Rather than paying for themselves, the Reagan, Bush, and Trump tax cuts each significantly increased the federal deficit. In total, those tax cuts have added over $10.4 trillion to the federal deficit since 1981 compared with the Congressional Budget Office’s baseline projections.
(2) Did the tax cuts supercharge economic growth, create millions of jobs, and raise wages?
Absolutely not. Rather than growing, the economy shrank after passage of the Reagan tax cuts. And unemployment surged to over 10%. Following the enactment of the Bush and Trump tax cuts, the economy did grow a bit, but at rates much lower than their supporters predicted.
(3) Did the tax cuts benefit everyone?
Heavens, no. Rather than benefiting everyone, the savings from the Reagan, Bush, and Trump tax cuts flowed mainly to the richest Americans. The average tax cut for households in the top 1% under the Reagan tax cut ($47,147) was 68 times larger than the average tax cut for middle-class households ($695). The Bush tax cut for households in the top 1% was 16 times larger than the average tax cut for the middle class. The 2017 Trump tax cut for households in the top 1% was 36 times larger than for middle-class households.
Summary: If the bill now being considered by the Senate is enacted, 11.8 million Americans will lose their health insurance, millions will fall into poverty, and the national debt will increase by $3.3 trillion, all to provide a major tax cut mainly to the rich and big corporations. There is no justification for this.
Never before in the history of this nation has such a large redistribution of income been directed upward, for no reason at all. It comes at a time of near-record inequalities of income and wealth.
What you can do: Call your senators and tell them to vote “no” on this calamitous tax and budget bill. Congressional switchboard: (202) 224-3121.
Beyond this, help ensure that senators who vote in favor of this monstrosity are booted out of the Senate as soon as they’re up for reelection.
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Tax the Rich, Cut Corporate Fraud: Khanna Details Progressive Path to Trim Deficit by $12 Trillion
"Do they think Americans can't do the math?" the California Democrat asked of Republicans in Congress. "We can—and we know their numbers don't add up. Ours do."
Jun 10, 2025
As congressional Republicans push a megabill that would add an estimated $2.4 trillion to the national debt while giving lavish tax breaks to the rich and gutting anti-poverty initiatives for the working class, Congressman Ro Khanna on Tuesday unveiled a progressive plan to cut the deficit by $12 trillion and enable investment in "essential programs for ordinary Americans: childcare, universal healthcare, affordable housing, free college, student debt cancellation, advanced manufacturing, and good-paying jobs."
The California Democrat's Progressive Deficit Reduction Plan, introduced in a report and floor speech, has five recommendations to cut spending: modernize the military ($850 billion), get rid of upcoding and fraud in Medicare Advantage ($830 billion), negotiate Medicare drug prices ($200 billion), end fossil fuel subsidies ($170 billion), and implement smarter procurement and contracting ($333 billion).
"There is absolutely no reason Americans should pay two to four times more for prescriptions than people in Canada, Germany, or the U.K."
Khanna's proposal points out that the Pentagon—which has a budget of nearly $1 trillion—has never passed an audit, and that getting ripped off by contractors is an issue not only at the Department of Defense but across the federal government. The document also emphasizes the need to crack down on fraud involving Medicare Advantage and argues that "there is absolutely no reason Americans should pay two to four times more for prescriptions than people in Canada, Germany, or the U.K."
On the fossil fuel front, the plan says that "we shouldn't be paying polluters to give our kids asthma and fleece the American public," and highlights that ending subsidies would not only save billions each year but also prevent 6 billion tons of carbon pollution.
The plan doesn't just advocate for spending cuts, it also features a trio of recommendations for generating revenue: tax corporations fairly ($2 trillion), tax billionaires ($4.7 trillion), and protect Social Security ($2.9 trillion).
Specifically, Khanna's proposal "restores the domestic corporate tax rate to 28%, collects international corporate taxes, closes loopholes like carried interest, and adds a 0.01% financial transaction tax." He also wants to make billionaires pay taxes on their wealth and loans on it, close inheritance loopholes, restore the top marginal tax rate to 39.6%, reinstate Internal Revenue Service funding to go after tax cheats, and remove a cap that allows them to pay into the program at a fraction of the rate that most working-class Americans pay.
Khanna, who is expected to run for president during the next cycle, also contrasted his plan with the budget reconciliation package currently moving through the GOP-controlled Congress. His report asserts that the Republican legislation is "not fiscal responsibility—it's a giveaway to the wealthy that sticks future generations with the bill."
In addition to increasing the deficit, the report says, "their bill risks driving up prices, pushing interest rates even higher, and making our tax code more convoluted. It could shake market confidence and ultimately drag down long-term economic growth—all while doing less for working families."
"Do they think Americans can't do the math? We can—and we know their numbers don't add up. Ours do," the document declares, laying out all of the figures for the next decade in a chart on the final page.
The congressman's blueprint—which resembles watchdog Public Citizen's January report responding to President Donald Trump and billionaire Elon Musk's so-called Department of Government Efficiency—comes as Senate Republicans consider the controversial megabill recently passed by the House of Representatives.
On Tuesday, GOP leaders in the upper chamber sent their House counterparts a list of policies "that need to be erased" from the package, according to Politico.
"If the flagged items aren't deleted, the bill won't enjoy special party-line treatment in the Senate and the filibuster would be enforced for passage of the 'big, beautiful bill' Republicans want to enact this summer," the outlet detailed. "In response, House GOP leaders plan to tee up a vote this week to nix specific provisions the Senate parliamentarian has identified as rule violations."
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