US on road to budget deficit after new bill adoption

Take a Break

Forex humour

25-07-2025 12:52

US on road to budget deficit after new bill adoption

Open trading account Open demo account

Deposit money

Money withdrawal

US on road to budget deficit after new bill adoption

Remarkable events are taking place in America. According to members of the US Congress, President Donald Trump’s bill, dubbed the Beautiful Bill, will increase the US budget deficit by $3.4 trillion. This is a significant amount. As a result, the consequences of adopting the bill may be unpredictable, officials believe.

The corresponding bill was approved by the US House of Representatives at the end of May 2025. The document, initiated by D. Trump, includes provisions for extending and expanding tax breaks, raising the national debt ceiling, and increasing some social deductions, as well as boosting defense spending. Particular attention is given to immigration issues. In addition, the Beautiful Bill provides for cuts to several social programs, particularly Medicaid.

According to analysts, the bill proposed by D. Trump will increase the United States budget deficit over the next nine years. “That increase in the deficit is estimated to result from a decrease in direct spending of $1.1 trillion and a decrease in revenues of $4.5 trillion,” experts emphasize.

The Beautiful Bill became a point of contention between the president and his former advisor, Elon Musk, CEO of Tesla and SpaceX. The businessman had previously criticized the bill and urged members of Congress not to vote in favor of it. This position by E. Musk provoked strong dissatisfaction from D. Trump.

"This massive, outrageous, pork-filled bill is a disgrace. Shame on those who voted for it—you know you did wrong," Elon Musk added.

As a result, the Beautiful Bill caused a rift between two influential figures. According to the American president, the head of Tesla and SpaceX knew the contents of the bill better than anyone else. However, E. Musk’s objections arose after the inclusion of a specific provision aimed at reducing benefits for electric vehicle manufacturers.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Forex humour