Trump’s Tax and Medicaid Bill Passes Amid Healthcare Industry Backlash
President Trump’s $4.5 trillion tax and spending bill cleared Congress on Thursday, drawing fierce criticism from healthcare groups who warn it will strip coverage from nearly 12 million low-income Americans. The legislation makes permanent Trump-era tax cuts while imposing historic reductions to Medicaid, including strict work requirements and new co-pays. Critics call it a “moral failure” that shifts costs to vulnerable households.
Medicaid Overhaul Threatens Coverage
The bill’s deepest cuts target Medicaid, which serves 71 million Americans. New 80-hour monthly work requirements for adults without disabilities and parents of teens over 14 will likely terminate coverage for millions unable to navigate bureaucratic hurdles. A $35 co-pay for some services could further deter care-seeking. The Congressional Budget Office (CBO) projects 11.8 million will lose insurance by 2034, straining hospitals and risking closures, especially in rural areas.
Tax Breaks Favor Wealthy Amid Deficit Surge
While Republicans tout $4.5 trillion in tax cuts, including deductions for tips, overtime, and seniors earning under $75,000, analyses show the wealthiest 10% gain $12,000 annually on average. The bottom 10% lose $1,600, mainly from Medicaid and food aid reductions. Despite claims of economic growth, the CBO estimates the bill adds $3.3 trillion to the deficit over a decade. Clean energy subsidies also face rollbacks, threatening renewable industries.
Healthcare Groups Decry “Human Cost”
The American Medical Association condemned the Medicaid cuts, warning they will turn “treatable illnesses into life-threatening conditions.” Service Employees International Union leader Greg Kelley labeled it a “moral failure,” citing risks to healthcare access and jobs. Though conservative adviser Ge Bai argued the private market could absorb those losing coverage, hospitals warn unpaid bills will cripple their finances.
Partisan Divide Shapes Implementation
Passed without Democratic support, the bill fuels 2026 midterm battle lines. Republicans defend it as curbing “fraud” and incentivizing work, while Democrats call it an assault on low-income families. Though Trump plans a July 4 signing ceremony, Quinnipiac polls show only 27% of voters support the legislation.