Trump Tax Bill: $1T Medicaid Cuts Pass Senate
The Senate has passed the Trump tax reform bill, a move sparking immediate debate due to its substantial Medicaid cuts.This bill, “The One Big Lovely bill Act,” faces scrutiny for its projected $1 trillion reduction in Medicaid funding over the next decade, perhaps impacting millions. News Directory 3 breaks down the key points, including the CBO’s estimate that nearly 12 million Americans could lose health insurance. The White House defends the bill, but reports suggest a disproportionate impact on lower-income earners.Explore the implications and follow the developing story; Discover what’s next.
Trump’s Tax Reform Bill Passes Senate Amid Medicaid Concerns
Updated July 02,2025
The One big Beautiful Bill Act (H.R. 1), championed by US President Donald Trump, has cleared the Senate following a tie-breaking vote cast by Vice President JD Vance.
The bill’s proposed changes to Medicaid have drawn criticism from Democratic senators and some Republicans.The Congressional Budget Office (CBO) projects that the bill will reduce Medicaid funding by approximately $1 trillion over the next decade,according to a CBO report.
The CBO estimates that these spending cuts, coupled with new work requirements for Medicaid recipients, could result in 11.8 million Americans losing health insurance by 2034. This figure includes an estimated 1.4 million individuals without verified citizenship or satisfactory immigration status who would lose coverage under state-funded programs.
The White house, in a press release, asserts that the bill will safeguard Medicaid for eligible citizens, strengthen coverage, and eliminate fraud and abuse.
Vance dismissed concerns about the potential impact on Medicaid. In a post on X, he stated that the bill’s immigration enforcement provisions are paramount.
Senator Eric Schmitt of Missouri echoed this sentiment, stating on X that the bill removes 1.4 million undocumented immigrants from Medicaid rolls.
A Yale university report suggests that the bill’s provisions will disproportionately affect the poorest Americans, with tax cuts primarily benefiting the wealthiest 1%.
The Yale report stated that the proposed changes to taxes, Medicaid, and spending would result in a 2.9% income decrease for the bottom 20% of earners, while the top 1% would see a 1.9% increase.
Senator Alexandria Ocasio-Cortez, in a post on X, described the bill’s passage as a “betrayal of working families.”
The AHA view
Rick Pollack,president and CEO of the american Hospital Association (AHA),expressed the group’s disappointment with the bill’s passage.He said the nearly $1 trillion in Medicaid cuts would harm the healthcare system, reduce access to care, and undermine hospitals’ ability to care for vulnerable patients.
“This legislation will cause 11.8 million Americans to be displaced from their health care coverage as thay move from insured to uninsured status,” Pollack said.
He added that the bill would increase uncompensated care for hospitals,potentially leading to service and staff reductions,longer wait times,and facility closures,especially in rural areas.
What’s next
The bill now heads to President Trump for his signature, after which the focus will shift to the implementation of the new policies and their impact on healthcare access and the economy.