PERSONAL FINANCE
Personal Finance

Donald Trump Budget Bill: How would the proposed cuts affect your daily life?

Massive tax cuts, deep spending reductions, and political battles ahead

Donald Trump Budget Bill: How would the proposed cuts affect your daily life?
AP

President Donald Trump's sweeping budget proposal has taken a major step toward becoming reality.

The House of Representatives narrowly approved the bill in a 217-215 vote, with Speaker Mike Johnson emphasizing that it fulfills Trump's vision for economic policy.

The budget blueprint extends Trump's 2017 tax cuts, proposes additional tax reductions, boosts border security funding, and mandates $2 trillion in spending cuts over the next decade.

While the istration claims these changes will fuel economic growth, critics argue they could result in devastating consequences for healthcare, education, and food assistance programs.

With the Senate still to weigh in, the question remains: who stands to gain, and who will pay the price?

To offset revenue losses from tax cuts and increased border security spending, Trump's budget requires drastic reductions in government programs. The most significant cuts are expected in Medicaid, food assistance, and education funding.

Medicaid Faces Billions in Reductions

The House Energy and Commerce Committee has been directed to slash at least $880 billion over the next decade. Since the majority of this committee's spending is allocated to Medicaid, the program is almost certain to see significant changes.

According to the New York Times, potential cost-saving measures include:

  • Stricter eligibility rules, including a national work requirement for certain recipients
  • Rolling back Medicaid expansion, which could strip coverage from up to 21 million Americans
  • More frequent eligibility checks, making it harder for beneficiaries to stay enrolled

While President Trump recently stated that Medicaid won't be "touched," previous budget proposals suggest otherwise. Critics argue that the proposed cuts would disproportionately affect low-income families, disabled individuals, and seniors who rely on Medicaid for essential healthcare services.

Education and Student Aid Programs at Risk

The House Education and Workforce Committee must cut at least $330 billion in funding, which would impact school meal programs and student aid.

These reductions could lead to:

  • Eliminating or scaling back school breakfast and lunch programs for low-income students
  • Ending the SAVE repayment plan, which helps reduce student loan debt
  • Increasing college tuition costs, as schools may be required to contribute more to student loan programs

If enacted, these changes could leave millions of students without critical financial assistance while forcing families to shoulder higher education costs.

Food Assistance Programs Face Tight Restrictions

The Agriculture Committee must identify $230 billion in spending cuts, most of which would come from the Supplemental Nutrition Assistance Program (SNAP). SNAP currently provides food benefits to 42 million Americans, including one in five children.

Proposed reductions may include:

  • Stricter work requirements, which could disqualify thousands of current beneficiaries
  • Reduced benefit amounts, making it harder for families to afford groceries

These cuts have sparked concern among advocacy groups, who warn they could lead to increased food insecurity for millions of struggling families.

Who Benefits From the Tax Cuts?

While these cuts target essential services, the budget extends Trump's 2017 tax cuts, which were set to expire this year.

  • Wealthy Americans earning over $5 million annually will receive an average tax cut of $280,000 per year, according to the Urban-Brookings Tax Policy Center.
  • Middle-class households making between $65,000 and $116,000 would see a $1,000 reduction in annual taxes.

Additionally, Trump has proposed eliminating taxes on tips, Social Security, and overtime pay, which could cost the government another $750 billion over the next decade.

What Happens Next?

The budget still faces an uphill battle in the Senate, where Republican lawmakers have pushed for additional military and border security spending but resisted deep domestic cuts.

If approved, the proposal would mark one of the most significant overhauls of federal spending in recent history.

While some Americans will benefit from tax relief, millions could see reduced access to healthcare, higher education costs, and fewer food assistance options.

As the debate unfolds, the central question remains: will the benefits of tax cuts outweigh the consequences of reduced government ?

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