Deficit to Skyrocket Under New Legislation

The Congressional Budget Office (CBO) has revealed that President Donald Trump's recently signed megabill is set to add a staggering $3.4 trillion to the federal deficit over the next decade. Additionally, the legislation is expected to leave 10 million more Americans without health insurance.

Tax Cuts and Medicaid Cuts at the Heart of the Bill

The CBO highlights that the primary contributor to the ballooning deficit is the permanent extension of the 2017 tax cuts, which will slash federal revenue by $4.5 trillion. Despite $1.1 trillion in spending reductions, mainly through Medicaid, the overall impact is a net loss due to the significant tax revenue decline.

Revised Estimates on Health Coverage

While earlier projections suggested that 11.8 million people would lose health coverage, the final bill's adjustments, including the removal of a provision targeting undocumented immigrants, have slightly lowered this figure. This change is anticipated to affect around 1.4 million individuals.