The deficit results from a decrease in direct spending of US$1.1 trillion and a decrease in revenues of US$4.5 trillion.
On July 22, 2025, the Congressional Budget Office (CBO) reported that the “One Big Beautiful Bill Act,” enacted on July 4, is projected to add US$3.39 trillion to the U.S. deficit from 2025 to 2034, reports 24brussels.
The latest CBO estimate surpasses the prior projection of US$3.25 trillion made in late June just before the legislation was passed. The rise in the deficit is attributed to a decrease in direct spending by US$1.1 trillion and a revenue decline of US$4.5 trillion.
This tax and budget act embodies U.S. President Donald Trump’s policy objectives, including significant tax reductions and increased funding for military and border security. The legislation has provoked considerable controversy among lawmakers and the American populace across various political and socioeconomic lines.
Concerns regarding the act’s large impact on the U.S. deficit have been voiced both domestically and internationally. CBO estimates suggest that it will raise U.S. borrowing by US$4.1 trillion, including interest, according to Maya MacGuineas, president of the Committee for a Responsible Federal Budget.
The Congressional Budget Office projects that Trump’s tax cuts will add trillions of dollars to the US fiscal deficit. pic.twitter.com/Gz3buTvqOv
— Philipp Heimberger (@heimbergecon) July 22, 2025
MacGuineas stated, “It’s still hard to believe that policymakers just added 4 trillion dollars to the debt. Many supporters of this law have spent months or years appropriately fuming about our unsustainable fiscal situation.”
She added, “But when they actually had an opportunity to fix it, they instead made it 4 trillion dollars worse.”
As of mid-2025, the national debt of the U.S. exceeds US$36.2 trillion, and the debt-to-GDP ratio has crossed levels not seen since World War II.
#FromTheSouth News Bits | Trade war: The European Union suspended retaliatory tariffs against the United States, warning it is “fully prepared” for war if President Donald Trump’s 30 percent levies hit on August 1. pic.twitter.com/o8zweecEZG
— teleSUR English (@telesurenglish) July 16, 2025
