Inside Trump's ‘Big beautiful bill': Tax cuts for the rich, medicaid and meals cut for poor Americans

Economic Times

8 hours ago

Debt burden to fall hardest on America's youth
Medicaid faces historic rollback
Experts warn of over 51,000 deaths and closed clinics
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Poor families and food aid hit hard
Green energy sector braces for big cuts
Students face heavier loan burden
Billionaires gain as tax code tilts
Republican rifts widen before final house showdown
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Donald Trump's flagship tax and spending package has scraped through the US Senate after a tense overnight session, with Vice-President JD Vance casting the tie-breaking vote. As news reached Trump during his Florida Everglades visit, the president shrugged off doubts. 'It's a great bill,' he said. 'There is something for everyone.' But behind the scenes, some Republicans remain wary.Numbers from the Congressional Budget Office show the bill adds about $3 trillion to national debt in a decade. Interest payments alone could surge between $600 and $700 billion a year. That means today's young Americans are likely to bear the weight through higher taxes and deep cuts to schools, housing, and roads. Ron Bonjean, a Republican strategist, put it bluntly: 'They're going to have to sell this to the American people, because most people, most voters, are just becoming aware of this.'Medicaid — America's health lifeline for millions — is on the chopping block. The Senate plan carves out over $1 trillion in cuts, which could strip cover from nearly 12 million low-income people. Senator Susan Collins said, 'My vote against this bill stems primarily from the harmful impact it will have on Medicaid, affecting low-income families and rural healthcare providers like our hospitals and nursing homes.'Senator Thom Tillis asked, 'What do I tell 663,000 people in two years, three years, when President Trump breaks his promise by pushing them off of Medicaid because the funding's not there anymore?'Researchers from Yale, Harvard and Penn estimate more than 51,000 extra deaths each year could follow the cuts. Nursing home rules would be delayed by a decade, risking another 13,000 lives yearly. 'Each year, the legislation would kill 51,000 Americans,' Yale's study found. Hospitals, rural clinics and care homes could close as states slash budgets to cope.New rules force adults to work 80 hours monthly to keep food stamps unless they have a young child. The Supplemental Nutrition Assistance Program faces a $300 billion cut. Millions of children risk losing free school meals. Veterans, homeless people and foster youth must also meet tougher rules. Many states will have to pick up the extra cost.Wind and solar farms face fresh penalties unless they follow strict sourcing rules from 2027. But with China dominating green supply chains, many firms say the targets are impossible. Funds for home-energy upgrades, electric vehicles and even tax breaks for bicycle commuters would vanish under Trump's plan.The bill scraps billions in support for university loans. Average borrowers could pay an extra $2,929 a year. Nurses, doctors and teachers hoping for debt relief might see their forgiveness programmes vanish, trapping them in debt for decades. Meanwhile, Trump's promise to cut taxes on Social Security payments is missing. His 'no tax on tips' pledge only applies through a narrow loophole — experts say the rich may game it.For the wealthy, the bill locks in Trump's first-term tax breaks and adds new ones. The richest 0.1 per cent stand to pocket $296,160 a year. The bottom fifth of households? Just $160. Elon Musk slammed it on X: 'All I'm asking is that we don't bankrupt America.' Trump shot back, threatening to cut subsidies to Musk's businesses and even mused about deporting him: 'We'll take a look.'Trump now faces a narrow path in the House. Several Republicans want changes. Marlin Stutzman wrote: 'The changes the Senate made to the House passed Beautiful Bill, including unacceptable increases to the national debt and the deficit, are going to make passage in the House difficult.'Speaker Mike Johnson remains defiant. 'My objective and my responsibility is to get that bill over the line,' he said. But Senate Democrat Chuck Schumer offered a warning: 'On the Republican side, when the bill passed, there was a bit of sombreness that I don't think was expected. And that's because they knew deep in their hearts how bad this bill is for them, their states and the Republican party.'For now, Trump's 'Big Beautiful Bill' teeters on a knife-edge. The deadline: July 4.