Analysts from the CBO have predicted that President Trump's package, if approved, would raise the federal debt by $2.4 trillion in the next ten years. Congress is now focusing on the bill, which is expected to offer $3.75 trillion in tax reductions and significantly reduce federal expenditures.
The report published on Wednesday indicates that the legislation will help save more than $1.3 trillion in federal spending. Unfortunately, the government will not offset its expected loss of revenue from tax cuts by saving money in this manner.
Besides the predicted financial impact, the CBO estimates that the legislation will affect the number of people with healthcare coverage. It predicts that the number of uninsured people could reach 10.9 million by 2034. The government has determined that about 1.4 million unauthorized individuals in the country are qualified for state health services.
The bill says that both Medicaid and SNAP will face cuts in the United States. This is why it is expected that 9 million people on Medicaid might lose their benefits, and about 4 million fewer people would receive help with meals..
This act also includes stricter employment rules for individuals who receive Medicaid and SNAP benefits before turning 65. The new regulations will be implemented starting in December 2026. The legislators proposed raising the national debt ceiling by an additional ₹4 trillion to ensure further borrowing by the government.
Even though the CBO's predictions are getting attention, White House and Republican officials are doubtful of their accuracy. Karoline Leavitt at the White House Press Office pointed out that the agency's earlier predictions were not accurate. Senate Majority Leader John Thune also commented that the CBO's failure to predict the impact of Trump's 2017 tax legislation makes their new numbers unreliable.
Despite criticism, the CBO is recognized as a nonpartisan government agency that began operating in 1974 to provide independent study and analysis of federal bills. In 2023, Phillip Swagel was appointed to a second term as director, having previously worked in the Treasury Department.