The CBO released a report on 11/8/2025 indicating that the poorest 10% of Americans will lose approximately 1,200 USD annually. This is attributed to reduced access to government assistance programs like Medicaid and food stamps under the Omnibus Budget Reconciliation Act of 2023 (OBBBA), often referred to as the "big, beautiful bill," signed by former President Trump.
Conversely, the wealthiest 10% are projected to see an average annual income increase of 13,600 USD per person due to the bill's tax cuts.
While the CBO acknowledges that most American households, including middle-income earners, will experience some income gains, the most significant benefits will go to the wealthiest.
Established in 1974, the CBO is a nonpartisan congressional agency that assesses the financial impact of legislation, forecasts the federal budget, and analyzes economic growth, inflation, and national debt. Its analyses are frequently used by lawmakers from both parties to inform policy debates and decisions.
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The US Capitol Building in Washington. Photo: US Congress |
The US Capitol Building in Washington. Photo: US Congress
This new estimate from the CBO comes as members of Congress leave Washington for their mid-session recess.
In July, Republicans pushed the OBBBA, a spending and tax cut bill proposed by Trump, through Congress. Democrats strongly opposed the legislation, warning that its tax cuts and spending priorities would harm essential government assistance programs and increase the national debt.
According to the CBO, changes to food stamp eligibility criteria under the new law will impact millions of Americans.
An estimated 2.4 million people will no longer qualify for the Supplemental Nutrition Assistance Program (SNAP) due to new work requirements. This could leave many individuals with disabilities without access to food assistance.
The CBO also estimates that by 3/2034, over 10 million Americans will lose health insurance coverage due to changes to healthcare programs like Medicaid under the new law.
Following the CBO's release, Republican House Ways and Means Committee Chairman Jason Smith expressed his disagreement with the CBO’s methodology, echoing previous criticisms. "The CBO has a history of inaccurate estimates, and like the Democrats, they are biased toward increased federal spending and higher taxes. Don't believe this," Smith said. Trump has not yet commented on the CBO’s new estimates.
Duc Trung (According to AP, WSJ, Washington Post)
