Donald Trump's ‘Big Beautiful Bill' slashes medicaid, cuts food aid, & imposes work rules that could devastate poor Americans

Time of India

14 hours ago

President Donald Trump signed a nearly 900-page tax and spending bill into law ahead of the Fourth of July deadline. The legislation, backed by Congressional Republicans, makes permanent several Trump-era tax breaks while introducing new deductions and spending priorities. The bill also brings significant changes to safety net programs and is projected to increase federal debt by more than $3 trillion by 2034.
Key tax changes and benefits for high-income earners
The new law cements previous tax brackets and includes temporary deductions for tips, overtime pay, and auto loans. Seniors earning up to $75,000 annually will be eligible for a $6,000 deduction, aligning with Trump's promise to eliminate taxes on Social Security benefits. The child tax credit increases slightly from $2,000 to $2,200, but lower-income families may not receive the full amount.
Additionally, the SALT (state and local tax) deduction cap rises to $40,000 for five years, providing major relief to taxpayers in high-tax states. Business tax breaks remain a prominent feature to encourage private sector investment.
However, a Congressional Budget Office analysis indicates that the wealthiest households stand to gain about $12,000 annually from the bill, while the poorest could see a $1,600 loss due to Medicaid and food assistance cuts.
New rules for medicaid and food aid recipients
The law introduces stricter eligibility terms for safety net programs. Adults up to age 65 who receive Medicaid or food assistance will need to meet new 80-hour-per-month work requirements. Parents of children aged 14 or older are also subject to these rules. A $35 co-payment for some Medicaid services has been added.
Though 71 million people rely on Medicaid and 40 million use the Supplemental Nutrition Assistance Program (SNAP), analysts note that most already work. Even so, changes could push millions out of coverage and assistance. Critics argue that these reforms could trigger serious hardship and backlash, especially in lower-income communities.
Some Republican senators expressed concern about the potential fallout. According to former White House economic adviser Alex Jacquez, the bill was designed to avoid scrutiny until after elections. 'They want to try to get past elections and try to hide the ball on the damage they're imposing on health care and food assistance,' he said.
Impact on ACA coverage and opposition response
Starting next year, several changes affecting healthcare enrollment will roll out. These include additional paperwork requirements and the removal of automatic renewals for ACA (Affordable Care Act) subsidies. As a result, maintaining health coverage could become more difficult for many families.
While Trump promoted the bill as fulfilling his promises, critics described it as a massive transfer of wealth. AFL-CIO President Liz Shuler called it 'the worst job-killing bill in American history,' warning that 17 million people could lose healthcare. She said it 'picked the pockets of working people to hand billionaires a $5 trillion gift.'While the bill delivers tax cuts and fulfills Trump's policy goals, it leaves low-income families to face the heaviest burden going forward.