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23h ago

One Big Beautiful Bill Act to Add $3.3 Trillion to Debt as Interest Costs Surpass Defense Spending

Investor groups are urging Congress to convene a bipartisan fiscal commission to address projected multi-trillion-dollar deficits

President Donald Trump bangs a gavel after signing his signature bill of tax breaks and spending cuts on the South Lawn of the White House in Washington, D.C., on July 4, 2025.
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Overview

  • The One Big Beautiful Bill Act took effect on July 4, extending tax cuts, raising the debt ceiling by $5 trillion and phasing in stricter work requirements for Medicaid and SNAP programs.
  • The Congressional Budget Office projects that the law will add about $3.3 trillion to the national debt over the next decade.
  • Annual interest payments now approach $1 trillion—exceeding the defense budget—and CBO forecasts they could reach $1.6 trillion by 2034, crowding out other spending.
  • Critics warn that temporary measures are concentrated early in the decade, risking total deficits of up to $6 trillion and pushing public debt from 100% to 130% of GDP by 2034.
  • Investor groups and editorial boards are calling for comprehensive fiscal reforms; some conservative commentators dispute CBO estimates, insisting that dynamic growth and tariff revenues will offset the new debt.