Trump tax law could cause Medicare cuts if Congress doesn't act, CBO says
Share and Follow


WASHINGTON (AP) — The federal budget deficits caused by President Donald Trump’s tax and spending law could trigger automatic cuts to Medicare if Congress does not act, the nonpartisan Congressional Budget Office reported Friday.

The CBO estimates that Medicare, the federal health insurance program for Americans over age 65, could potentially see as much as $491 billion from 2027 to 2034 if Congress does not act to mitigate a 2010 law that forces across-the-board cuts to many federal programs once legislation increases the federal deficit. The latest report from CBO showed how Trump’s signature tax and spending law could put new pressure on federal programs that are bedrocks of the American social safety net.

Trump and Republicans pledged not to cut Medicare as part of the legislation, but the estimated $3.4 trillion that the law adds to the federal deficit over the next decade means that many Medicare programs could still see cuts. In the past, Congress has always acted to mitigate cuts to Medicare and other programs, but it would take some bipartisan cooperation to do so.

Democrats, who requested the analysis from CBO, jumped on the potential cuts.

“Republicans knew their tax breaks for billionaires would force over half a trillion dollars in Medicare cuts — and they did it anyway,” said Rep. Brendan F. Boyle, the top Democrat on the House Budget Committee, in a statement. “American families simply cannot afford Donald Trump’s attacks on Medicare, Medicaid, and Obamacare.”

Hospitals in rural parts of the country are already grappling with cuts to Medicaid, which is available to people with low incomes, and cuts to Medicare could exacerbate their shortfalls.

As Republicans muscled the bill through Congress and are now selling it to voters back home, they have been highly critical of how CBO has analyzed the bill. They have also argued that the tax cuts will spur economic growth and pointed to $50 billion in funding for rural hospitals that was included in the package.

___

Share and Follow
You May Also Like
Episcopal bishop warns clergy to prepare for 'new era of martyrdom' after ICE shooting

Episcopal Bishop Urges Clergy to Brace for Potential Martyrdom in Wake of ICE Shooting

A bishop from New Hampshire is advising his clergy to prepare for…
Kiara Jenkins killed in Woodlawn, Chicago shooting near 64th and Drexel while heading to Mt. Bethlehem Missionary Baptist Church

Tragic Shooting in Woodlawn: Kiara Jenkins Fatally Shot En Route to Mt. Bethlehem Missionary Baptist Church

CHICAGO (WLS) — The tight-knit community of a Woodlawn church is grappling…
FILE - This Aug. 7, 2025, satellite image shows construction of large white tents for a new immigrant detention center at Fort Bliss, a U.S. Army base outside El Paso, Texas. (Planet Labs via AP, File)

Tragic Loss: ICE Reports Suicide of Detainee at Texas Detention Center

An immigrant from Nicaragua was discovered dead last week at a Texas…
Indiana completes undefeated season and wins first national title, beating Miami 27-21 in CFP final

Indiana Hoosiers Make History: Undefeated Season Culminates in First National Title Victory Over Miami in CFP Final

The Indiana Hoosiers made history by defeating Miami with a score of…
ISIS fighters break free from Syrian jail amid chaotic government handover

Chaos Unleashed: ISIS Prisoners Escape During Turbulent Syrian Jail Transfer

Amid a tumultuous shift in power, militants from the Islamic State group…
Ian Jackson, Joson Sanon shining in St. John's win could be March game-changer

St. John’s Victory: Ian Jackson and Joson Sanon Poised to Transform March Madness

Saturday night was a memorable one for St. John’s, clinching a narrow…
Matt Damon: Netflix wants movies to restate plot 'three or four times' for viewers on their phones

Matt Damon Reveals Netflix’s Strategy: Reiterating Plot Points for Mobile Viewers

On Friday, the “Joe Rogan Experience” podcast became the platform for a…
Trump refuses to rule out Greenland INVASION as NATO scrambles

Trump’s Greenland Ambitions: Could a Military Move Be on the Horizon? NATO on Alert

Amidst rising tensions between the United States and NATO, former President Donald…