US President-elect Donald Trump gives a thumbs up sign as he walks with Senate Majority Leader Mitch McConnell on Capitol Hill: Reuters/Joshua Roberts

The US Congressional Budget Office said in a report on Wednesday that a bipartisan bill to shore up ObamaCare insurance markets would reduce the deficit by US$4 billion over the next ten years, the Hill reports.

Without providing the insurer subsidies proposed in the deal the government would have to increase financial assistance to low-income people due to increased premiums, according to a separate CBO report. The resulting expenditures would increase the federal deficit by US$194 billion.

This could provide a boost to the Republican Party’s tax reform efforts, which could face some resistance from deficit hawks within the party unwilling to pass cuts that would add significantly to the deficit.

The Senate likely has enough votes to pass the bill, but Majority Leader Mitch McConnell said he won’t bring it for a vote until Trump says he will sign it. After initially expressing support for the bill, Trump has asked for changes that might erode support from Democrats.

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