US Senate Budget Plan Adds $3.3T to Deficit, Cuts Healthcare

By Staff, Agencies

The Senate’s version of the budget reconciliation bill is under growing scrutiny after the Congressional Budget Office (CBO) projected it would add nearly $3.3 trillion to federal deficits over the next decade, substantially more than the $2.8 trillion deficit increase estimated for the House-passed version in May.

The projection has intensified partisan debate in Washington. While the White House maintains that the legislation would ultimately "reduce deficits," that claim contrasts with the CBO analysis and other independent forecasts.

Republican lawmakers have challenged the CBO's assumptions, asserting that the long-term fiscal impact may be overstated.

Despite the disputes, the new figures suggest the Senate’s approach would have a broader fiscal footprint, further complicating efforts to reconcile the two versions of the bill.

Beyond its fiscal implications, the Senate bill also proposes major changes to Medicaid and the Affordable Care Act.

According to the CBO, these adjustments would result in nearly 12 million more uninsured Americans by 2034, exceeding the 10.8 million additional uninsured projected under the House’s version of the legislation.

The sharp difference in projected health coverage outcomes underscores the stakes of the ongoing negotiations, as lawmakers face mounting pressure to address both the federal deficit and the healthcare needs of millions.