Senator Murray Asks CBO About Impact of Trump’s Defense Budget on Deficits

CBO Director confirms: Republicans' Big Ugly Bill is the single piece of legislation from last 10 years that's added most to national debt

CBO Director tells Murray that Trump's requested defense increase would dramatically increase the deficit and add $200 billion in interest costs alone over 10 years

ICYMI : Senator Murray on President Trump's FY27 Budget Request

*** WATCH : Senator Murray's full questioning***

Washington, D.C. - Today-at a Senate Appropriations Legislative Branch Subcommittee hearing on the FY27 budget requests for the Government Accountability Office (GAO), Congressional Budget Office (CBO), and Government Publishing Office (GPO)-U.S. Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee, spoke about the importance of the legislative branch agencies' work to Congress and questioned witnesses on what President Trump's budget request would mean for our nation's deficits.

[BIG UGLY BILL IMPACTS ON DEBT]

Senator Murray began by asking Congressional Budget Office Director Phillip Swagel, "What single piece of legislation has contributed the most to increasing the debt in like the last decade?"

"The single piece of legislation is the 2025 Reconciliation Act [Republicans' 'Big Beautiful Bill'], and that increased the deficit by $4.7 trillion over 10 years, including the interest costs and the dynamic feedback," replied Director Swagel.

"Right, so it was the biggest debt driver in a decade," said Senator Murray. "Just for the record, every Democrat opposed it, every Republican voted for it. And I am personally just really concerned because what happened is the Republicans maxxed out our national credit card for corporations and billionaires, and then they told working families the wallet was empty when it comes to healthcare. So, I just want to say that for the record today."

[TRUMP'S BUDGET AND THE DEFICIT]

Senator Murray then asked about the deficit impacts of President Trump's defense request for FY27, "I want to ask you about President Trump's FY27 budget. It requests $1.5 trillion dollars in defense spending-that's about a half trillion increase over this year's Pentagon funding. That is an outrageous increase, and it comes as the President is also requesting to defund programs that help make sure that Americans can afford the basics. Can you help us put these figures in perspective? How does that dramatic increase in defense spending compare to something like the cost to extend the ACA tax credits?"

Director Swagel responded, "Okay, so as you said, the defense request is about $500 billion above the you know, the resources in the baseline, there's another $200 billion of interest, roughly $200 billion of interest costs [over 10 years] associated with that request. In comparison, the ACA subsidies extending those for 10 years would be roughly $330 billion, there'd be some interest costs with that also. But think of that as the comparison."

"Okay, so it's a roughly $450 billion dollar increase in the defense budget and a permanent extension of the ACA tax credits would have cost $350 billion. I think that's kind of astounding: that if we took the money from this one year of proposed defense spending, we could lower health care costs and expand access to health insurance for 10 years-I just think it's important to note that," said Senator Murray.

Senator Murray then asked: "If enacted, what impact would President Trump's proposed FY27 defense budget have on the deficit?"

"On the deficit, it would increase it above the baseline by the $500 billion plus the interest costs for the year. So, it would go from $2 trillion to $2.5 trillion," answered Director Swagel.

"So as in future years, the reality is the cost is going to be a lot more because of-" Senator Murray responded.

"Would be higher, that's correct," replied Director Swagel.

"I hope all the deficit hawks are paying attention to this, because it's pretty astounding," said Senator Murray.

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