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The White House is challenging the nonpartisan Congressional Budget Office’s assessment that President Donald Trump’s sweeping tax and spending package will increase the federal deficit by trillions of dollars over the next decade.
The current $36.2 trillion national debt tracks what the US owes to creditors, and the national deficit measures how far federal spending is exceeding revenue. So far, the federal government has spent more than $1 trillion in the fiscal year, according to the Treasury Department.
The Congressional Budget Office (CBO) released an analysis Wednesday as a house passed in May increases the federal deficit by $2.4 trillion over the next decade, so the so-called “big, beautiful bill” is what is called “big, beautiful bill.”
However, according to the White House, the CBO’s analysis is based on a false premise, as it assumes that Republicans in Congress cannot extend Trump’s 2017 tax cuts.
Rather, the White House’s Office of Management and Budget (OMB) predicts that tax and expenditure measures will independently reduce the deficit by $1.4 trillion.
The Senate will weigh Trump’s “big and beautiful bill” as policy groups support the CBO, projecting a $3 trillion debt increase
Failing Trump’s tax package will cause a recession, according to the office of management and budget director Russell Vought. (Kayla Bartkowski/Getty Images)
Additionally, the White House argues that the measure, coupled with other initiatives such as tariffs and other spending cuts, will lead to a deficit reduction of at least $6.6 trillion over the decade.
The “big and beautiful bill” faces criticism from numbers, including SpaceX and Tesla CEO Elon Musk, who called the measure “hate” and argued that the bill would increase the federal deficit.
The measure is now heading to the Senate. There, lawmakers, including Senator Randpole, have expressed their opposition to the legislation.
Trump’s “big and beautiful bill” faces resistance from Republican senators against the fear of debt
Senator Rand Paul opposes the settlement package due to increased debt restrictions in a television news interview at Capitol in Washington on June 3, 2025, while Senate Republicans work to advance President Donald Trump’s spending and tax bills.
Meanwhile, OMB Director Russell Vought told a House Approval Committee member on Wednesday that he believes the CBO’s analysis is “fundamentally wrong.”
“That would lead to a decrease in the deficit and $1.4 trillion in debt,” Vought said. “We’re cutting down $1.7 trillion in forced savings. They don’t think of a way they can build their baseline. They’re fundamentally misunderstanding the economic consequences of not expanding current tax easing as well as bringing a fair shaking to economic growth.”
Failing Trump’s tax package would cause a recession, according to Vought.
“There’s a recession,” Vought told lawmakers. “The economic storm cloud is going to be very dark. I think there will be a 60% tax increase on Americans.”
Meanwhile, the White House accused CBO of employing people who contributed to the Democratic campaign despite serving in former President George W. Bush’s administration.
Price tag estimate for House GOP tax package increases to 3.94T
White House Press Secretary Caroline Leavitt will speak at a briefing at the White House in Washington on June 3, 2025. (Evan Vucci/AP)
“I don’t think many people know this. There was no one staff member in the entire Congressional Budget Office, who has been serving Republicans since 2000,” Leavitt told reporters Tuesday. “But since then, we’ve had a lot of staff members who have contributed to Democratic candidates and politicians, but unfortunately this is our country’s institution that has become partisan and political.”
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The CBO Director is appointed in accordance with recommendations from the House and Senate Budget Committees. At the time, it was Sen. Mike Enzi of R-Wyoming first recommended Skagel in 2019, then R-Texas’s Rep. Jodey Arrington again recommended swagel in 2023.
The CBO did not immediately respond to requests for comments on OMB’s analysis from Fox News Digital, or claims from the White House about an office full of staff in support of Democrats.
Deirdre Heavey of Fox News contributed to this report.
Diana Stancy is a political reporter for Fox News Digital, covering the White House.
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