Senate Should Reject Trump’s Debt-Increasing Bill to Avoid Worsening Fiscal Burden

Over the past twenty years, the surge in federal debt has sparked numerous alarms warning of an impending fiscal crisis, a moment when the government’s easy access to cheap borrowing could abruptly end.

However, the more pressing concern is that this easy access to borrowing continues unabated.

The anticipation of a future crisis tends to overshadow the immediate challenges caused by the government’s reliance on borrowing. Currently, the nation is allocating an immense amount of money annually just to cover interest on its debt. These interest payments now surpass military expenditures, rival Medicare’s yearly costs, and rank only behind Social Security in federal spending priorities.

The proposed legislation inspired by former President Trump’s 2017 tax reforms would exacerbate this fiscal recklessness. It aims to cut taxes further while compelling the government to increase borrowing to meet its financial obligations. Consequently, interest expenses would climb, diverting funds away from vital public services.

This year alone, the government is projected to pay lenders over $1 trillion in interest. According to budget analyses, the House version of this bill, already passed, would raise annual interest payments on the federal debt by approximately $55 billion over the next decade—a sum sufficient to fund comprehensive repairs for every bridge across the country. Preliminary indications suggest the Senate’s version could carry an even higher price tag.

Critics of the Congressional Budget Office’s (CBO) projections should note that the agency’s director, Phillip Swagel, was reappointed by Republican lawmakers just two years ago and received commendations for his impartiality and integrity. The CBO’s findings align closely with independent evaluations from respected budget research organizations.