Trump Bill Estimated to Add $2.4 Trillion to U.S. Debt

Trump’s megabill, or the “one, big, beautiful bill,” is estimated to add $2.4 trillion to the U.S. debt pile over the next 10 years, according to a new nonpartisan report from the Congressional Budget Office (CBO). The bill would result in an estimated $1.3 trillion spending reduction but also a $3.7 trillion reduction in revenues. It would also cause 10.9 million people to lose health insurance by 2034 as a result of new eligibility rules.

The CBO’s previous report showed that the bill could add $2.3 trillion of new debt.

What Does Rising U.S. Debt Mean for Stocks?

Rising debt could result in higher Treasury yields as investors sell off Treasury assets over concerns of the government properly managing its finances. This in turn could increase borrowing rates for corporations, leading to lower corporate growth. In addition, a higher government deficit could also lead to inflation, which could result in a higher federal funds rate, making borrowing for companies more costly as well.

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