Overview

• The CBO’s latest analysis finds that adding $718 billion in debt-service costs increases the Act’s deficit impact from $3.4 trillion to $4.1 trillion over the 2025–2034 period.
• Enacted on July 4, the One Big Beautiful Bill Act combined a $5 trillion increase in the debt ceiling with extended Trump-era tax cuts and new deductions for seniors, workers, and auto buyers.
• In a letter to Sen. Jeff Merkley, the budget office estimated that making ten temporary tax relief provisions permanent would add $789 billion in primary deficits over the next decade.
• Under the full-extension scenario, debt held by the public would rise by 11.5 percentage points of GDP by 2034 compared with January projections.
• Lawmakers on both sides are citing the new figures to debate the package’s short-term electoral benefits versus its long-term impact on fiscal sustainability.