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Speaker Johnson Pushes Back on Deficit Concerns, Defends House Budget Bill as Historic Spending Reform

WASHINGTON, D.C. — House Speaker Mike Johnson (R-LA) is pushing back hard against growing concerns from Republican senators and budget analysts over the impact of the House’s newly passed tax and spending bill. Labeling it the "largest spending cut in at least 30 years, and arguably ever," Johnson insists the plan will fuel economic growth and denies it will balloon the federal deficit — despite projections showing otherwise.

“This is a transformational bill. It incentivizes U.S. manufacturing, supports job creators, and sets the stage for long-term economic expansion,” Johnson said Sunday on CNN’s “State of the Union.”

$3.8 Trillion Deficit Projection Draws Scrutiny

Johnson’s optimism clashes sharply with a recent analysis by the nonpartisan Congressional Budget Office (CBO), which estimates the bill’s tax and spending provisions could increase the federal deficit by a staggering $3.8 trillion over the next decade.

• The CBO noted that revenue shortfalls from deep tax cuts and expanded tax credits would account for a significant portion of the projected deficit.
• If passed as-is, the legislation would add approximately $380 billion per year, with debt servicing costs likely to rise alongside interest rates.

But Johnson outright rejected the CBO’s conclusions, saying the projections fail to account for expected economic benefits.

“We’re not buying it,” Johnson said. “These models underestimate the economic growth we believe this bill will unleash.”

Senate GOP Divided on the Path Forward

The bill passed the House last week by a razor-thin margin, thanks in part to last-minute pressure from former President Donald Trump, who personally visited Capitol Hill to rally Republican votes. The measure includes sweeping tax breaks, regulatory rollbacks, and spending adjustments aimed at stimulating the economy.

Now the bill heads to the Senate, where several Republican lawmakers — including fiscal conservatives like Sen. Ron Johnson (R-WI) and Sen. Rand Paul (R-KY) — have already expressed concern about the deficit impact and signaled their intention to propose changes.

“The math simply doesn’t add up,” said Sen. Paul. “We’re cutting in the wrong places, and not nearly enough.”

Johnson to Senate: “Don’t Meddle Too Much”

Speaker Johnson has made it clear that any major changes from the Senate could jeopardize the fragile coalition he built in the House. With a slim GOP majority, he can only afford to lose a handful of votes in any final ratification process.

“I’ve got a very delicate balance here, a very delicate equilibrium that we’ve reached over a long period of time,” he explained. “It’s best not to meddle with it too much.”

Johnson urged Senate Republicans to make “as few modifications as possible,” warning that major alterations could unravel the deal entirely.

Market Jitters and Political Stakes

Financial markets responded cautiously following the bill’s House passage. On Wednesday, the Dow Jones Industrial Average and S&P 500 both saw modest declines, reflecting investor concerns over mounting federal debt and inflationary pressures.

Economists remain divided. Some conservative think tanks, such as the Heritage Foundation, have applauded the bill’s focus on tax relief and deregulation, calling it a “pro-growth policy framework.” Meanwhile, progressive analysts warn it prioritizes corporate tax cuts while placing long-term fiscal stability at risk.

Looking Ahead: Can the Bill Survive the Senate?

The political stakes are high. With 2024 elections looming, Republicans are eager to show legislative momentum, while also appealing to voters concerned about the national debt — which currently stands at over $34.6 trillion, according to the U.S. Treasury Department.

The Senate is expected to take up the bill in the coming days, but with internal divisions and mounting pressure from both sides of the aisle, its final form remains uncertain.

Bottom Line: Speaker Johnson is betting big that economic growth will outpace deficit concerns — but with rising interest costs, narrow political margins, and a skeptical Senate, the path forward is anything but guaranteed.