Budget office says Trump's tax law will add $3.4 trillion to deficits, leave 10 million uninsured
More than 10 million people will be uninsured under the law in 2034 because of the law, CBO found, an improvement from an earlier projection that found 11.8 million people losing coverage over the decade.
The release of the CBO analysis Monday comes at the end of a grueling legislative fight, but at the start of a longer political struggle to come as the two parties clash over the law's impact on the economy, healthcare and government programs. Republicans are touting the bill as a tax cut for all Americans, yet a recent AP-NORC poll found about two-thirds of U.S. adults expect the new tax law will help the rich as Democrats attack the legislation.
The bill Trump signed into law on July 4 extended current tax rates for individuals that were set to expire at the end of this year and temporarily created new tax deductions for tips, overtime and auto interest loans for new vehicles assembled in the U.S. Republicans also used the bill to cut future spending on Medicaid and food assistance, and to phase out certain clean energy tax credits more quickly.
Democrats were quick to highlight the CBO's findings.
'Today's report reminds us of something: facts are stubborn and the facts are clear,' said Senate Democratic leader Chuck Schumer. 'The big, ugly betrayal is a loser for the country and will be a loser for the Republicans.'
Republicans say the bill was critical to ensure most Americans didn't experience a significant tax increase next year. Trump and Republicans have also insisted that economic growth will exceed the CBO's projections for the next decade, erasing the projected deficits as more revenue comes into the Treasury than anticipated.
Nonpartisan fiscal watchdogs also highlighted the CBO's latest projection. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said there will be a shorter-term 'sugar high' as stimulus makes its way through the economy. But modelers from across the ideological spectrum agree that any sustained economic changes are likely to be modestly beneficial, or negative.
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'And not one serious estimate claims this bill will improve our fiscal situation,' MacGuineas said. 'Rather, positive growth effects are likely to be swamped by the effects of higher debt and interest rates.'
The CBO said more than $1 trillion in deficit savings is generated through the health portions of the bill, which includes new work requirements for certain Medicaid beneficiaries in states that expanded the program through the Affordable Care Act.
Some late changes on Medicaid were made to the bill to win over holdouts. One of those changes added a $50 billion fund for rural hospitals.
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Associated Press writer Mary Clare Jalonick contributed to this report.
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an hour ago
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Published Jul 24, 2025 • 3 minute read In this image released by the Martin County, Fla., Sheriff's Office, law enforcement officers arrest Ryan Wesley Routh, a man suspected in an apparent assassination attempt of Donald Trump, Sept. 15, 2024. Photo by Martin County Sheriff's Office via AP, File / AP FORT PIERCE, Fla. — A man charged with attempting to assassinate President Donald Trump last year at his Florida golf course will return to court Thursday to once again explain why he wants to fire his court-appointed lawyers and represent himself. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Ryan Routh previously made the request earlier this month during a hearing in Fort Pierce before U.S. District Court Judge Aileen Cannon. She did not rule during the hearing but said she would issue a written order later. But now Routh, 59, is set to be back in front of Cannon, a day after his court-appointed federal public defenders asked to be taken off the case. Routh is scheduled to stand trial in September, a year after prosecutors say a U.S. Secret Service agent thwarted his attempt to shoot Trump as he played golf. Routh has pleaded not guilty to charges of attempting to assassinate a major presidential candidate, assaulting a federal officer and several firearm violations. The judge told Routh earlier this month that she doesn't intend to delay the Sept. 8 start date of his trial, even if she lets him represent himself. Routh, who has described the extent of his education as two years of college after earning his GED certificate, told Cannon that he understood and would be ready. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. In a June 29 letter to Cannon, Routh said that he and his attorneys were 'a million miles apart' and that they were refusing to answer his questions. He also suggested in the same letter that he could be used in a prisoner exchange with Iran, China, North Korea or Russia. 'I could die being of some use and save all this court mess, but no one acts; perhaps you have the power to trade me away,' Routh wrote. On Wednesday, the federal public defender's office filed a motion for termination of appointment of counsel, claiming that 'the attorney-client relationship is irreconcilably broken.' Attorneys said Routh refused to meet with them for a scheduled in-person meeting Tuesday morning at the federal detention center in Miami. They said Routh has refused six attempts to meet with their team. This advertisement has not loaded yet, but your article continues below. 'It is clear that Mr. Routh wishes to represent himself, and he is within his Constitutional rights to make such a demand,' the motion said. The U.S. Supreme Court has held that criminal defendants have a right to represent themselves in court proceedings, as long as they can show a judge they are competent to waive their right to be defended by an attorney. Prosecutors have said Routh methodically plotted to kill Trump for weeks before aiming a rifle through the shrubbery as Trump played golf on Sept. 15 at his West Palm Beach country club. A Secret Service agent spotted Routh before Trump came into view. Routh allegedly aimed his rifle at the agent, who opened fire, causing Routh to drop his weapon and flee without firing a shot. Law enforcement obtained help from a witness who prosecutors said informed officers that he saw a person fleeing. The witness was then flown in a police helicopter to a nearby interstate where Routh was arrested, and the witnesses confirmed it was the person he had seen, prosecutors have said. Routh has another, unrelated hearing in Cannon's courtroom scheduled for Friday on the admissibility of certain evidence and testimony that can be used for the trial. In addition to the federal charges, Routh also has pleaded not guilty to state charges of terrorism and attempted murder. 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