Analysis: Trump’s One Big Beautiful Bill Act will cost the government, you more money
A new government report reveals that President Donald Trump’s One Big Beautiful Bill Act will add $4.1 trillion to federal deficits over the next decade, significantly more than previously projected.
Updated: 6:47 AM CDT Aug 5, 2025
A new estimate from tthe nonpartisan Congressional Budget Office shows President Donald Trump’s tax and spending law, the One Big Beautiful Bill Act, will add $4.1 trillion to federal deficits over the next decade — a roughly $700 billion jump from a previous CBO projection from a few weeks ago.The analysis says higher interest rates will make it more expensive for the government to borrow and pay back debt. The government issuing more debt through bonds, a main source of raising revenue, will likely lead to the treasury having to pay higher rates of return on those bonds to secure investors. The government bond market influences overall interest rates in the economy, and those rates are also expected to remain elevated. This means the average consumer will pay more to borrow money for things like homes, cars and credit cards.The price tag could keep going up. In responding to a request from Senate Budget Committee ranking member Sen. Jeff Merkley, D-Oregon, the CBO says the president’s law could add $5 trillion total to deficits over the next 10 years if popular temporary tax relief provisions, like no taxes on tips, overtime, car loans and the senior deduction, are made permanent.Republicans argue against the CBO’s findings, saying the law will spur economic growth, generate revenue and offset any shortfalls made through tax cuts.Watch the latest on the One Big Beautiful Bill Act:
A new estimate from tthe nonpartisan Congressional Budget Office shows President Donald Trump’s tax and spending law, the One Big Beautiful Bill Act, will add $4.1 trillion to federal deficits over the next decade — a roughly $700 billion jump from a previous CBO projection from a few weeks ago.
The analysis says higher interest rates will make it more expensive for the government to borrow and pay back debt. The government issuing more debt through bonds, a main source of raising revenue, will likely lead to the treasury having to pay higher rates of return on those bonds to secure investors.
The government bond market influences overall interest rates in the economy, and those rates are also expected to remain elevated. This means the average consumer will pay more to borrow money for things like homes, cars and credit cards.
The price tag could keep going up. In responding to a request from Senate Budget Committee ranking member Sen. Jeff Merkley, D-Oregon, the CBO says the president’s law could add $5 trillion total to deficits over the next 10 years if popular temporary tax relief provisions, like no taxes on tips, overtime, car loans and the senior deduction, are made permanent.
Republicans argue against the CBO’s findings, saying the law will spur economic growth, generate revenue and offset any shortfalls made through tax cuts.
Watch the latest on the One Big Beautiful Bill Act:
