Tax Cut Extension Would Increase the U.S. Debt by $4.2 Trillion
July 1, 2025–The Senate approved President Trump’s signature budget and policy bill today, as Vice President JD Vance broke a tie vote, clearing the bill for the House.
The legislation, formerly known as the “Big, Beautiful Bill,” would reduce taxes on the wealthy, cut the SNAP food aid program, and reduce the Medicaid healthcare for low-income people by $1 trillion. Furthermore, H.R. 1 would implement significant budgetary and policy changes. The new text totals 887 pages.The bill masks an estimated $3.3 to $3.8 trillion revenue loss to the federal budget. The bill, H.R. 1, would raise the current U.S. national debt of $37 trillion to historic new highs. The House passed a different version of the bill in May, rocking the bond markets and causing a dip in the U.S. credit rating by Moody’s agency.
