Chip Roy: Congress Needs to Knuckle Down on Deficit Amid Massive Bill
Over the course of a decade, the House reconciliation bill is projected to boost federal budget deficits by an astounding $2.3 trillion, according to the Congressional Budget Office.
House Budget Committee member Rep. Chip Roy, R-Texas, dishes on the issues he has with parts of President Donald Trump's game-changing legislation in an interview on The Bottom Line.
The "One Big, Beautiful Bill" that Congress is looking to move quickly through legislation aims to enact President Trump's tax cuts and spending reforms, but it will add over $2 trillion to the budget deficit over a decade, according to a recent Congressional Budget Office (CBO) analysis [1].
The bill would add a net $2.3 trillion to federal budget deficits over the next decade after factoring in some spending reductions in the package. Most of the deficit impact comes from the extension of tax cuts implemented in 2017 during Trump's first term through the Tax Cuts and Jobs Act (TCJA). That tax law is set to expire at the end of 2025, and extending the lower tax rates from the TCJA increases deficits by over $2.1 trillion over a decade. The extension of a higher standard deduction adds an additional $1.2 trillion over that period [1].
All told, the tax cuts and reforms in the package add nearly $3.8 trillion to the deficit over a decade, though spending reductions in other areas of the bill offset some of that to arrive at the $2.3 trillion figure [1].
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A US flag flies near the United States Capitol in Washington, D.C., on February 25, 2025 [3].
Medicaid reforms resulting in spending reductions would decrease budget deficits by about $988 billion over a decade, while changes to federal nutrition programs lower deficits by nearly $294 billion, according to the CBO.
Critics question the economic growth projections related to the tax cuts, suggesting that it might not generate sufficient new revenue to offset the projected deficit increases [2].
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An analysis by the nonpartisan Committee for a Responsible Federal Budget (CRFB) found that the bill would add $3.1 trillion to the deficit under various assumptions. However, under the budget reconciliation process, the bill cannot raise budget deficits beyond a 10-year budget window without offsets, so lawmakers often make certain policies temporary to reduce the long-term deficit impact [2].
If the House-passed version of the bill is altered by the Senate, it will have to return to the House for another vote before it can reach the president's desk for signature into law [4].
Republicans hold a narrow majority in the Senate, which could present difficulties in passing the bill, given Senators Ron Johnson, R-Wis., and Rand Paul, R-Ky., have expressed concerns about the bill's impact on the deficit [4].
FOX BUSINESS [Alex Wong / Getty Images]
- The bill, known as "One Big, Beautiful Bill," is aimed at enacting President Trump's tax cuts and spending reforms, but it will add over $2 trillion to the budget deficit over a decade, according to a recent Congressional Budget Office (CBO) analysis.
- The tax cuts and reforms in the package, including the extension of a higher standard deduction, add nearly $3.8 trillion to the deficit over a decade, though spending reductions in other areas of the bill offset some of that.
- Medicaid reforms resulting from the bill would decrease budget deficits by about $988 billion over a decade, while changes to federal nutrition programs lower deficits by nearly $294 billion, according to the CBO.
- However, criticism has arisen around the economic growth projections related to the tax cuts, with some suggesting that it might not generate sufficient new revenue to offset the projected deficit increases.
