Deficit worries are mounting in the Senate as Republican senators echo JP Morgan Chase CEO Jamie Dimon’s warnings about a potential “crisis” due to continued government spending, directly impacting the debate over President Trump’s “One Big Beautiful Bill Act.” These shared concerns are fueling opposition to the legislation.
The House-passed bill, which aims to cut taxes, increase border and military spending, and reduce Medicaid outlays, is navigating the reconciliation process in the Senate, where a simple majority vote is all that’s required for passage. However, the narrow Republican majority means that the unified front of fiscal conservatives and business leaders is proving influential.
Senators Ron Johnson and Rand Paul are at the forefront of this opposition, openly agreeing with Dimon that the bill’s projected $3.8 trillion increase in the deficit over ten years, as estimated by the CBO, is “completely unsustainable.” They are pushing for a leaner, more fiscally responsible version of the bill.
The controversial Medicaid provisions, including new work requirements, also face strong opposition. Furthermore, the Byrd Rule could remove non-budgetary provisions such as those related to AI regulations or Planned Parenthood, ensuring that the version ultimately presented to the President will likely be significantly different.