Senate Infrastructure Bill to Add $3.3 Trillion to US Debt Over Next Decade

The US Congressional Budget Office reported on June 29, 2025, that the Senate version of the "Infrastructure Investment and Jobs Act" will increase US debt by $3.3 trillion over the next decade. This update is significant as it could impact monetary policy and indirectly affect crypto markets due to changes in the economic landscape.

The Infrastructure Investment and Jobs Act, passed by the US Senate, aims to bolster American infrastructure while adding $3.3 trillion to the national debt, as estimated by the CBO. This legislation encompasses investments across sectors, addressing a broad spectrum of infrastructure projects. The economic implications of this Act span significant fiscal outcomes, notably the anticipated budget increase over a decade. Potential implications for the cryptocurrency market include regulatory adaptations that could redefine crypto market dynamics in line with fiscal policy shifts.

Public responses have varied significantly. Notably, major industry leaders and lawmakers have engaged in a debate regarding the fiscal policy. Statements from congressional leaders reflect mixed sentiments on the legislation’s long-term macroeconomic effects. The Senate's version of the infrastructure bill, often referred to as the 'Beautiful Bill,' is projected to significantly increase the U.S. national debt. According to estimates, the bill would add approximately $3.3 trillion to the debt over the next decade. This projection comes after the bill's narrow passage in the House, where it faced considerable debate and scrutiny.

The Senate's bill is not only expected to increase the debt but also to include a $5 trillion debt ceiling increase. This substantial rise ensures funding for existing projects and includes a $150 billion boost in defense spending. The defense spending increase is notable for its inclusion of projects such as the “Golden Dome” missile, which has been a point of contention among lawmakers. The bill's impact on the national debt has raised concerns among analysts and lawmakers alike. Critics argue that the expected increase in debt is particularly problematic because a significant portion of the borrowed money would go to those who received the largest tax cuts. This dynamic has led to debates about the fairness and sustainability of the bill's provisions.

The Senate's version of the bill is also notable for its inclusion of new taxes on renewable energy projects. Specifically, the bill proposes a new tax on solar and wind projects, even for those that do not receive any tax credits. This provision has been met with criticism from environmental advocates who argue that it could hinder the growth of renewable energy in the U.S. The bill's passage through the Senate and its subsequent impact on the national debt highlight the complex nature of fiscal policy in the U.S. As lawmakers continue to debate the merits and drawbacks of the bill, the focus remains on its potential to shape the country's economic landscape for years to come. The bill's provisions, including the debt ceiling increase and defense spending boost, are likely to be closely scrutinized as it moves through the legislative process.