Trump's 'big beautiful bill' is projected to add $3.4 trillion to the debt, budget office says
The report found that the law, which Republicans passed along party lines, will also "increase by 10 million the number of people without health insurance" by 2034.
The budget office scrutinized the final version of the bill after Republicans made a series of last-minute changes to cobble together the votes needed in the Senate; it passed by a vote of 51-50. That revised version subsequently passed the House on a vote of 218-214. Trump enacted it on July 4.
The 887-page package extends Trump's 2017 tax cuts while providing tax deductions for tips and overtime pay for the next four years. It includes hundreds of billions of dollars in new spending for the military and to carry out Trump's mass deportation agenda. And it pays for some of that with cuts to Medicaid, SNAP benefits (which help low-income families purchase groceries) and clean energy funding.
The analysis found that the law's net spending cuts of $1.1 trillion are outstripped by the $4.5 trillion in decreased revenue, compared to if the measure had not passed.
Republican leaders said passing the "big, beautiful bill" was essential to averting a tax hike at the end of this year, when much of Trump's 2017 tax law was slated to expire.
Recent surveys show the bill is unpopular with Americans. Democrats are leaning heavily into attacks on the bill as a tax cut that disproportionately benefits the wealthy, paid for in part with spending cuts that harm the working class.
Some Republicans and White House allies, meanwhile, are casting the bill as a tax benefit for "working families," highlighting the move away from taxes on tips and overtime in particular. Speaker Mike Johnson, R-La., predicted that voters will "reward" Republicans for the bill in the midterm elections.
"This is a bill that was written for hard working Americans, middle and lower class earners in particular, and they will feel the effects of that in the economy, and they'll have higher wages and more opportunity and more economic growth, and that's a major factor in a midterm election. And the border will be secure. We'll have American energy dominance going again," Johnson told NBC News earlier this month after it passed.
Asked if he has any concerns that it will cost the GOP seats in the 2026 midterm elections, Johnson responded, "No concerns at all. In fact, it's going to gain seats for us. We're that confident."
The CBO also found that the law, which includes changes to the Affordable Care Act, will reduce average premiums for the standard "benchmark" ACA plan by about 0.6% in 2034.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 minutes ago
- Yahoo
Those who invested in Multi-Chem (SGX:AWZ) five years ago are up 457%
When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on a lighter note, a good company can see its share price rise well over 100%. Long term Multi-Chem Limited (SGX:AWZ) shareholders would be well aware of this, since the stock is up 276% in five years. It's down 2.1% in the last seven days. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, Multi-Chem achieved compound earnings per share (EPS) growth of 32% per year. This EPS growth is remarkably close to the 30% average annual increase in the share price. That suggests that the market sentiment around the company hasn't changed much over that time. Rather, the share price has approximately tracked EPS growth. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on Multi-Chem's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Multi-Chem, it has a TSR of 457% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments! A Different Perspective Multi-Chem's TSR for the year was broadly in line with the market average, at 29%. It has to be noted that the recent return falls short of the 41% shareholders have gained each year, over half a decade. Although the share price growth has slowed, the longer term story points to a business well worth watching. It's always interesting to track share price performance over the longer term. But to understand Multi-Chem better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Multi-Chem you should know about. Multi-Chem is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Singaporean exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hill
4 minutes ago
- The Hill
New FEMA grant program gives states $600M to build migrant detention centers
A new $608 million grant program from the Federal Emergency Management Agency (FEMA) will give states money to build detention centers for people suspected of being in the United States unlawfully. FEMA was already slated to cover some of the costs for Florida's 'Alligator Alcatraz' using a Biden-era program meant for helping asylum seekers. The new facility, quickly constructed in a remote part of the Florida Everglades, is expected to run a tab of about $450 million a year. The new FEMA grant program comes as the Trump administration has increasingly slashed FEMA's ability to assist disaster response, and as the president has mulled closing the agency altogether. CNN reported Friday that FEMA has proposed cutting nearly $1 billion in grant funding to help local first responders better prepare for disasters and to help bolster cybersecurity. A webpage for the program also said it would help reduce 'overcrowding' in facilities maintained by Customs and Border Patrol. A Human Rights Watch report released this week charged that three facilities run by Immigration and Customs Enforcement in Florida faced 'extreme overcrowding,' and that many detainees were denied access to medical care. FEMA has come under scrutiny in the wake of deadly flash floods in Texas, including reports that the federal response was hamstrung by budget cuts or controls designed to limit large expenditures. Applications for the program are open through August 8. It's not clear if states beyond Florida are yet planning make pushes to build their own detention centers.
USA Today
4 minutes ago
- USA Today
The Trump administration is telling immigrants 'Carry your papers.' Here's what to know.
Immigrants have long been required to carry ID proving they're in the US legally, but the rule was not enforced. Until now. Amid the Trump administration's ongoing crackdown on illegal immigration, the nation's immigration service is warning immigrants to carry their green card or visa at all times. U.S. Citizenship and Immigration Services posted the reminder July 23 on social media: "Always carry your alien registration documentation. Not having these when stopped by federal law enforcement can lead to a misdemeanor and fines." Here's what immigrants – and American citizens – need to know. 'Carry your papers' law isn't new The law requiring lawful immigrants and foreign visitors to carry their immigration documents has been on the books for decades, dating to the 1950s. The Immigration and Nationality Act states: "Every alien, eighteen years of age and over, shall at all times carry with him and have in his personal possession any certificate of alien registration or alien registration receipt card issued to him." But the law had rarely been imposed before the Trump administration announced earlier this year that it would strictly enforce it. The "carry your papers" portion fell out of use for cultural and historical reasons, said Michelle Lapointe, legal director of the nonprofit American Immigration Council. In contrast to the Soviet bloc at the time the requirement was written, "We have never been a country where you have to produce evidence of citizenship on demand from law enforcement." In a "Know Your Rights" presentation, the ACLU cautions immigrants over age 18 to follow the law and "carry your papers with you at all times." "If you don't have them," the ACLU says, "tell the officer that you want to remain silent, or that you want to consult a lawyer before answering any questions." A 'precious' document at risk Many immigrants preferred to hold their green card or visa in safe-keeping, because, like a passport, they are expensive and difficult to obtain. Historically, it was "a little risky for people to carry these precious documents such as green card, because there is a hefty fee to replace it and they are at risk of not having proof of status – a precarious position to be in," Lapointe said. But as immigration enforcement has ramped up, the risks of not carrying legal documents have grown. Failure to comply with the law can result in a $100 fine, or imprisonment of up to 30 days. Immigration enforcement and 'racial profiling' U.S. citizens aren't required to carry documents that prove their citizenship. But in an environment of increasing immigration enforcement, Fernando Garcia, executive director of the nonprofit Border Network for Human Rights in El Paso, Texas, said he worries about U.S. citizens being targeted. "With massive raids and mass deportation, this takes a new dimension," he said. "How rapidly are we transitioning into a 'show me your papers' state?" "The problem is there are a lot of people – Mexicans, or Central Americans – who are U.S. citizens who don't have to carry anything, but they have the burden of proof based on racial profiling," he said. "There are examples of U.S. citizens being arrested already, based on their appearance and their race." Not just immigrants: Why some Native American citizens worry about getting caught in ICE's net American citizens targeted by ICE The Trump administration's widening immigration crackdown has already netted American citizens. In July, 18-year-old Kenny Laynez, an American citizen, was detained for six hours by Florida Highway Patrol and Border Patrol agents. He was later released. Federal agents also detained a California man, Angel Pina, despite his U.S. citizenship in July. He was later released. Elzon Limus, a 23-year-old U.S. citizen from Long Island, New York, decried his arrest by ICE agents in June, after he was released. In a video of the arrest, immigration agents demand Limus show ID, with one explaining he "looks like somebody we are looking for." In updated guidance, attorneys at the firm of Masuda, Funai, Eifert & Mitchell, which has offices in Chicago, Detroit and Los Angeles, advise U.S. who are concerned about being stopped and questioned "to carry a U.S. passport card or a copy of their U.S. passport as evidence of U.S. citizenship." Lauren Villagran can be reached at lvillagran@
