In a revealing financial assessment released Monday, the Congressional Budget Office (CBO) unveiled the long-term impacts of President Donald Trump’s major legislative initiative. Signed into law on July 4, the bill is forecasted to significantly increase the federal deficit by $3.4 trillion over the next decade, while simultaneously stripping health insurance from approximately 10 million Americans.

The CBO's report indicates that while the legislation aims to curtail over $1 trillion in healthcare spending—primarily through substantial cuts to Medicaid—the overall financial burdens imposed by the bill, notably the permanent extension of Trump's 2017 tax cuts, will overshadow these savings. According to the analysis, these tax policies will reduce federal revenue by a staggering $4.5 trillion, including additional cuts incorporated during Senate debates.

Interestingly, the new uninsured estimate of 10 million is a reduction from a previous CBO projection of 11.8 million. The revised figure accounts for the exclusion of a policy that would have affected around 1.4 million undocumented immigrants. This policy removal is a significant factor behind the lowered forecast, as the initial bill targeted states that provide health coverage to undocumented immigrants using state funds, even though they are ineligible for Medicaid.

The original bill also aimed to reduce funding for states that expanded Medicaid coverage under the 2010 health law established by Democrats. However, this provision was eliminated in the final bill following advice from the Senate parliamentarian.

Adding a twist to the fiscal analysis, at the urging of Senate Republicans, the CBO conducted an alternative evaluation using a new accounting approach that excludes the cost associated with permanently extending the 2017 tax cuts. Republicans contend that extending existing tax rates should not be deemed as contributing to the deficit. Under this method, the bill would purportedly increase the federal deficit by a comparatively minor $366 billion.

This comprehensive assessment by the CBO lays bare the significant financial and social ramifications of the GOP's latest legislative achievement. As the debate over fiscal responsibility versus social welfare continues, the effects of this megabill will likely resonate through U.S. economic and healthcare landscapes for years to come.

Katherine Tully-McManus contributed to this report.