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6d ago

House GOP Budget Bill Advances Despite CBO Warning of $2.3 Trillion Deficit Increase

The proposed legislation would slash Medicaid and SNAP funding, trigger $535 billion in automatic Medicare cuts, and disproportionately benefit the wealthiest Americans.

President Donald Trump gestures next to House Speaker Mike Johnson on Capitol Hill in Washington, DC, on May 20.
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Overview

  • The Congressional Budget Office (CBO) projects the GOP's reconciliation bill will add $2.3 trillion to the federal deficit over the next decade, triggering $535 billion in automatic Medicare cuts under PAYGO rules.
  • The bill proposes $700 billion in Medicaid cuts and $267 billion in SNAP reductions, potentially leaving millions without health coverage or food assistance.
  • CBO analysis shows the poorest 10% of Americans would lose up to 4% of their household resources, while the richest 10% would gain up to 4%, primarily due to tax cuts.
  • The legislation introduces new Medicaid work requirements for adults aged 19 to 64, which experts warn could lead to significant coverage losses due to administrative hurdles.
  • Despite President Trump's public warnings against cutting Medicaid, House Republicans are pushing to finalize the bill before Memorial Day, facing internal divisions and bipartisan opposition.