Senate Republicans are backing a budget package that would raise the debt ceiling by $5 trillion, the largest increase in U.S. history, raising questions about its economic impact.
The proposal is part of President Donald Trump’s “One Big Beautiful Bill Act” and would give the government more room to spend.
It looks like they’ll need it: The bill continues and expands tax breaks set to expire after 2025, and similar provisions in the House version of the bill were estimated to increase the deficit by around $3.8 trillion over the next decade, according to the Congressional Budget Office.
The bill comes as federal borrowing is accelerating and deficit spending continues to grow. The government has run annual shortfalls since 2001, steadily adding to the national debt.
Here’s what it could mean for the economy — and your wallet.
