economy
February 11, 2026
One Big Beautiful Bill Act will add $4.7 trillion to deficits: CBO
The One Big Beautiful Bill Act, passed by Republicans and signed by President Donald Trump last year, will add $4.7 trillion to deficits through 2035, according to the Congressional Budget Office.
TL;DR
- The One Big Beautiful Bill Act is projected to increase deficits by $4.7 trillion through 2035.
- The legislation extended the 2017 Trump tax cuts, its primary component.
- The CBO's estimate for the deficit impact increased by $3.4 trillion compared to earlier projections.
- Republicans argue the bill will stimulate economic growth, but the CBO anticipates upward pressure on inflation and interest rates.
- Trump's tariffs are projected to reduce deficits by $3 trillion over the next decade.
- The federal budget deficit is expected to reach $1.9 trillion in fiscal 2026 and $3.1 trillion by 2036.
- Federal debt held by the public is forecast to rise to 120% of GDP in 2036, exceeding the post-WWII high.
- Generative AI is expected to contribute approximately one-tenth of a percentage point to annual economic growth.
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