U.S. Congressional Budget Office Projects $2.42 Trillion Increase in Deficit Under Republican Tax Bill

The nonpartisan Congressional Budget Office (CBO) has estimated that the version of the tax and spending bill passed by the House of Representatives, associated with former President Donald Trump, would raise the U.S. federal budget deficit by $2.42 trillion over the next ten years.

In its assessment released Wednesday, the CBO projected that, compared to baseline forecasts, federal revenue would decline by $3.67 trillion, while expenditures would fall by $1.25 trillion between now and 2034.

This projected fiscal deterioration has raised concerns among Republican fiscal conservatives. Although the bill narrowly passed the House last month, it faces resistance in the Senate, where multiple amendments have been proposed. Trump is expected to meet with Senate Finance Committee Republicans to discuss the legislation.

The CBO’s estimate does not include dynamic effects—such as potential changes in economic growth or other indicators—that may result from the proposed tax and spending policies.