Trump tax bill will add $2.4 trillion to the deficit and leave 10.9 million more uninsured, CBO says - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Advisor News
Newswires RSS Get our newsletter
Order Prints
June 4, 2025 Newswires
Share
Share
Tweet
Email

Trump tax bill will add $2.4 trillion to the deficit and leave 10.9 million more uninsured, CBO says

Associated Press

WASHINGTON (AP) — President Donald Trump’s big bill in Congress would unleash trillions in tax cuts and slash spending, but also spike deficits by $2.4 trillion over the decade and leave some 10.9 million more people without health insurance, raising the political stakes for the GOP's signature domestic priority.

Republican leaders in Congress, determined to muscle the sweeping package forward, had little to say after the analysis released Wednesday by the nonpartisan Congressional Budget Office. GOP senators spent time at the White House for what one called a robust afternoon discussion with Trump.

“We’re committed to making a law that will make the lives of the American people better,” said Senate Majority Leader John Thune of South Dakota afterward. “We will get this done one way or another.”

But Democrats laboring to halt the package, called the One Big Beautiful Bill Act after the president’s own catchphrase, piled on with relentless opposition.

“In the words of Elon Musk, this bill is a ‘disgusting abomination,’” said Rep. Brendan Boyle of Pennsylvania, the top Democrat on the House Budget Committee, reviving the billionaire former Trump aide’s criticism of the package.

The analysis comes at a crucial moment as Trump is pushing Congress, where Republicans have majority control, to send the final product to his desk to become law by the Fourth of July. The House passed the bill last month by a single vote, but it's now slogging through the Senate, where Republicans want a number of significant changes.

And the politics are only intensifying.

After Musk blindsided Congress with an all-out assault against the bill this week, House Speaker Mike Johnson rushed to do damage control.

The GOP speaker said he called Musk to discuss the criticism, but had not heard back. Musk has threatened to use his political apparatus to go after Republicans in the midterm elections.

“I hope he comes around,” Johnson, R-La., told reporters.

Hours later, Musk, whose business interests could be impacted by green energy rollbacks in the bill, implored voters to call their representatives and senators: “Bankrupting America is NOT ok!” he wrote on social media, “KILL the BILL”

Tax breaks, but also cuts to health care

The work of the CBO, which for decades has served as the official scorekeeper of legislation in Congress, is closely watched by lawmakers and others seeking to understand the budgetary impacts of the sprawling 1,000-page-plus package.

The bill includes roughly $3.75 trillion in tax cuts — extending the expiring 2017 individual income tax breaks and temporarily adding new ones that Trump campaigned on, including no taxes on tips. The revenue loss would be partially offset by nearly $1.3 trillion in reduced federal spending elsewhere, namely through Medicaid and food assistance.

As a result, some 7.8 million people would no longer have health insurance with changes to Medicaid, including 5.2 million from the proposed new work requirements on those nondisabled adults up to age 65, with some exceptions, the analysis said.

With the Medicaid changes, some 1.4 million people who are in the United States without legal status in state-funded health programs would no longer have coverage. Also, some 400,000 would lose coverage from the termination of a medical provider tax that key Republicans, including Sen. Josh Hawley of Missouri, want to keep in place to ensure rural hospitals can keep paying their bills.

Republicans argue that their proposals are intended to strengthen Medicaid and other programs by rooting out waste, fraud and abuse. They want the federal funding to go to those who most need health care and other services, often citing women and children.

But Senate Democratic Leader Chuck Schumer said those claims are bogus and are simply part of long-running GOP efforts to repeal and replace the Affordable Care Act, or Obamacare, as most states have expanded Medicaid to serve more people under the program.

“They just want to strangle health care,” Schumer said.

Additionally, the CBO had previously estimated that nearly 4 million fewer people would have food stamps each month due to the legislation’s proposed changes to the Supplemental Nutrition Assistance Program, known as SNAP, including new work requirements for some older Americans and parents of school-age children. Some would see their benefits reduced by about $15 by 2034, the CBO has said.

Republicans criticize the CBO

Ahead of the CBO’s release, the White House and Republican leaders criticized the budget office in a preemptive campaign designed to sow doubt in its findings.

Senate Majority Leader John Thune said the CBO was “flat wrong” because it underestimated the potential revenue growth from Trump’s first round of tax breaks in 2017. The CBO last year said receipts were $1.5 trillion, or 5.6% greater than predicted, in large part because of the “burst of high inflation” during the COVID-19 pandemic in 2021.

White House Budget Director Russ Vought said when you adjust for “current policy,” which means not counting some $4.5 trillion in existing tax breaks that are simply being extended for the next decade, the overall package actually doesn’t pile onto the deficit. He argued that the spending cuts alone, in fact, help reduce deficits by $1.4 trillion over the decade.

But Democrats and even some Republicans call that “current policy” accounting move a gimmick. Still, it’s the approach Senate Republicans intend to use during their consideration of the package to try to show it does not add to the nation’s deficits. Vought argued that the CBO is the one using a “gimmick” by tallying the costs of continuing those tax breaks that would otherwise expire.

“Russ is right,” Johnson, the House speaker, posted on social media. “Our One Big Beautiful Bill will REDUCE the deficit WHILE delivering on the mandate given to us by the American people. Let’s get it done!”

White House press secretary Karoline Leavitt has also suggested that the CBO’s employees are biased, even though certain budget office workers face strict ethical rules — including restrictions on campaign donations and political activity — to ensure objectivity and impartiality.

What's at stake

The individual income tax breaks that had been approved during Trump's first term in the White House will expire in December if Congress fails to act, in what Republicans warn would be a massive tax hike on many American households.

The package also includes a massive buildup of $350 billion for border security, deportations and national security that is central to the GOP agenda, as well as a $4 trillion increase to the nation’s $36 trillion debt limit, which the Treasury Department says is needed by this summer to pay the nation’s bills.

CBO aims for impartiality

More than 50 years ago, the CBO was established by law after Congress sought to assert its control, as outlined in the Constitution, over the budget process.

Staffed by some 275 economists, analysts and other employees, the CBO says it seeks to provide Congress with objective, impartial information about budgetary and economic issues.

Its current director, Phillip Swagel, a former Treasury official in Republican President George W. Bush’s administration, was reappointed to a four-year term in 2023.

___

Associated Press writers Kevin Freking, Darlene Superville, Joey Cappelletti and Michelle Price contributed to this report.

Older

Contract talks stall between Northern Light Health and Anthem

Newer

Suspect in UnitedHealthcare CEO killing said he 'had it coming,' according to prosecutors

Advisor News

  • Why your clients should be planning for healthcare costs in retirement
  • Why emotional readiness is one key to retirement
  • Moody's reprimands Uncle Sam for squandering Hamilton's vision
  • Bad online advice leads to bad financial decisions
  • Nationwide RetireAssist provides more options, flexibility
More Advisor News

Annuity News

  • American National Insurance Company Introduces Smart Start Accumulator Series
  • Security Benefit bolsters its Foundations Annuity
  • National Life: Strong 2024 sales led by 20% life growth, 17% annuity rise
  • LIMRA/LOMA targets consumers with Alliance for Lifetime Income merger
  • Legacy systems a big barrier to insurance industry digital marriage
Sponsor
More Annuity News

Health/Employee Benefits News

  • 188 Greenberg Traurig Attorneys, 46 Practices Recognized in The Legal 500 United States 2025 Edition
  • Federal budget bill could strip 300K Pennsylvanians of Medicaid coverage, push rural hospitals to the brink
  • Federal Medicaid cuts would cost 13,000 Kansans their health care coverage
  • Reconciliation bill would cut $800B in health care spending, spike uncompensated care
  • House tax-and-spending bill and other Trump administration changes could make millions of people lose their health insurance coverage
More Health/Employee Benefits News

Life Insurance News

  • 5Star Life Insurance Co. Named One of Forbes' Best Insurance Companies 2025
  • Insurers show strongest financial performance in a decade
  • Seritage Growth Properties Makes $40 Million Loan Prepayment
  • Jackson Awards $900,000 in Grants to Nonprofits Across Lansing, Nashville and Chicago
  • Life insurance sales up 2% in the first quarter, Wink finds
More Life Insurance News

- Presented By -

Top Read Stories

  • What Are Robinhood Event Contracts? Everything You Need to Know
  • What cuts, 20% layoffs at NOAA might mean to insurers
  • LIMRA/LOMA targets consumers with Alliance for Lifetime Income merger
  • Plaintiffs seeks final OK of $69M UnitedHealth settlement in 401(k) lawsuit
  • Top Financial Stocks To Watch Today – June 7th
More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • RFP #T01625
  • TAG Advisors Adds New Specialty Markets Leader Carmine LaCognata
  • Royal Neighbors of America Celebrates 130 Years
  • WealthFeed Partners with Wells Advantage Group to Empower Agents with Next-Level Prospecting and Insurance Solutions
  • Wichita National Life Implements Hexure’s FireLight to Power Annuity Sales and Market Expansion
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2025 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet