The Congressional Budget Office estimates that President Trump's budget bill could lead to the loss of health coverage for nearly 12 million Americans and add $3.3 trillion in debt. With party divisions evident in the Senate, concerns grow over the impact on Medicaid and other healthcare programs, igniting fierce political debates.
Health Coverage at Risk: 12 Million Americans Could Be Affected by Trump’s Budget Proposal
Health Coverage at Risk: 12 Million Americans Could Be Affected by Trump’s Budget Proposal
A current budget bill in the U.S. Senate may drastically cut health care coverage and escalate national debt, as key votes loom ahead of a critical deadline.
A sprawling budget proposal being debated in the U.S. Senate could potentially strip health insurance from nearly 12 million Americans while simultaneously adding $3.3 trillion (£2.4 trillion) to the national debt, according to estimates from the Congressional Budget Office (CBO). This alarming assessment may pose significant challenges for Republican lawmakers seeking to push President Donald Trump’s "One Big Beautiful Bill Act" through the Senate before a self-imposed July 4 deadline.
Late Saturday night, after intense lobbying from party leaders, the spending plan narrowly passed a preliminary vote in the Senate by a margin of 51-49. The debate intensified following the announcement from Senator Thom Tillis of North Carolina, who declared he would not run for reelection after opposing the bill aligned with Trump’s signature legislation. Opposition from Democrats has been vocal, underscoring the potential $1 trillion cut to healthcare funding the initiative may entail if ratified.
Two Republican senators, Tillis and Rand Paul from Kentucky, defied party lines by voting against the advancement of the bill. Paul voiced his objections based on the proposed increase to the U.S. debt limit, while Tillis noted that it could cost his state significant healthcare funding. Currently, given the Republican majority in the Senate with 53 seats, the party can only afford the loss of three votes.
As senators continued to discuss the legislation on Sunday, the bill’s fate remained uncertain. Senate rules allowed for a lengthy 16-hour reading of the nearly 1,000-page proposal by Democratic lawmakers, aiming to stall its passage. Following this, they received an additional 20 hours for debate during which it is anticipated Democrats will use their full quota to sway the direction of the vote.
There is also the option for lawmakers to propose amendments to the bill. Should it pass, it will return to the House of Representatives for final approval before reaching the President for signature. Trump has expressed urgency, emphasizing that failure to pass the bill would amount to the "ultimate betrayal" to American citizens.
Initially, Trump celebrated the Senate's vote to advance the bill, branding it a "great victory." However, the proposed cuts to Medicaid - a crucial program for vulnerable populations including the elderly and low-income groups - triggered significant backlash. Democratic Senator Mark Warner characterized the legislation as a mechanism for tax cuts benefiting the wealthy at the expense of essential healthcare services.
While the bill asserts that over 80% of Americans would see tax cuts in the following year, wealthier individuals would receive the lion’s share of these benefits, as outlined by the non-partisan Tax Policy Center. Advocates of the bill, such as Senator Markwayne Mullin from Oklahoma, argued it aims to combat fraud and promote work initiatives among Medicaid beneficiaries.
The revised budget proposal retains several fiscal maneuvers, including tax cuts that reflect Trump’s campaign promises, such as deductions related to Social Security benefits and the elimination of taxes on overtime and tipping. Additionally, the bill imposes work requirements for most adults to qualify for benefits and decreases taxes states can levy on medical providers, which are vital for Medicaid funding.
Concerns from Republican senators regarding adverse impacts on rural healthcare facilities prompted adjustments to the legislation, including an increase in rural hospital relief funds from $15 billion to $25 billion. Furthermore, restrictions on the U.S. food stamps program would demand proof of work from most adults with children aged 14 and older to qualify for assistance. The bill would also begin shifting some costs from the federal government to state budgets starting in 2028.
