Latest news with #debtlimit
Yahoo
10-07-2025
- Business
- Yahoo
6 things to know about Trump's 'Big, Beautiful Bill'
It's taken a few months but on July 3rd, President Donald Trump got the centerpiece of his legislative agenda, what he calls his "big, beautiful bill" passed — narrowly — by a Republican-led Congress. Trump, possibly on Independence Day, will sign the bill, which was built around continuing the tax cuts he got Congress to pass eight years ago during his first term beyond their expiration date. But this package goes much further by restricting Medicaid and food stamps, shifting federal costs to states, cutting a slew of other taxes and raising the nation's debt limit by $5 trillion. Republicans leaders have argued throughout that it delivers on the nation's priorities, cuts spending and will result in lower deficits, despite Democratic claims to the contrary that it hurts working class and lower-income Americans. In the end, pretty much all the more moderate Republicans in the U.S. House, who were said to have concerns over the Medicaid cuts, and more fiscally demanding GOP members, who said it didn't slash government enough, rallied behind it (though it's unclear what, if any promises, were made to them to secure their support). It passed 218-214 on a largely party line final vote. All of Michigan's Republican members voted for it; all the Democrats voted against. For Michiganders, here's a handful of highlights, or lowlights, depending on your political perspective: As has been reported widely, the legislation includes expanded work, education or training requirements of 80 hours a month for able adults who aren't caregivers of small kids to continue getting food stamps under the Supplemental Nutrition Assistance Program (SNAP) or insurance coverage under Medicaid, the state/federal program for low-income individuals and families. (Medicaid work requirements would need to be in place by the end of next year in most cases; it's unclear in the bill when the tougher new SNAP rules would go into place but it could be sooner.) Trump has insisted this doesn't constitute a cut and Republicans have argued that it means people who most need help will get it. But nonprofit providers and Democrats say the end result will be to restrict coverage as people fall off the rolls. The Citizens Research Council of Michigan, a nonpartisan group, estimates between 200,000 and 700,000 Michiganders could lose health insurance under the bill. Meanwhile, additional costs for maintaining the programs will be shifted back onto the state (and its taxpayers) or have to be cut. During former President Joe Biden's administration, a Democratic Congress provided a consumer credit of up to $7,500 for the purchase of a qualifying electric vehicle, or EV, as a way to push product for American automakers who were lining up new models for the coming years. Trump campaigned against it and any other rules trying to push people to buy EVs and the subsidy will terminate, abruptly, on Sept. 30 of this year. Meanwhile, the bill cuts the civil fine for automakers that violate fuel mile-per-gallon standards (which have been used to try to make auto fleets more environmentally friendly) down to zero. In large measure, the bill is intended to make permanent those earlier tax cuts — for corporations and for individual taxpayers — while raising the standard deduction and the child tax credit somewhat. While those changes may not be felt widely as they largely lock in existing breaks, the same can't be said for some others. Like a new $6,000 deduction for some seniors. A deduction for tipped income and overtime pay. And a deduction for interest paid on new vehicle loans (or at least those assembled in the U.S.) Each has its restrictions based on income and how much is being deducted and will last for only a few years as written but they'll make a big difference to some taxpayers. When taking into account all of the tax cuts in the legislation, which runs about 900 pages long, revenues — tax collections — would be reduced by about $4.5 trillion over a decade, according to the nonpartisan Congressional Budget Office (CBO). But the enumerated spending cuts − the specific reductions made to federal government spending − included in the bill total just $1.2 trillion, according to CBO. Various other organizations have made different estimates, and, yes, much of the smaller tax collections result from continuing the earlier 2017 tax cuts beyond their expiration date. But there is widespread agreement among fiscally minded research groups like the Cato Institute and the Committee for a Responsible Federal Budget that by not making more specific spending cuts and holding back on the tax cut changes it will explode the nation's debt at a time when it should be reining it in. Republicans, however, promise there are more spending cuts on the way. Not in any major way directly but there are widespread concerns that it will hasten the already-short window before Social Security's retirement trust fund and Medicare's hospital trust fund become insolvent — meaning reserves and other backups won't be adequate to make up the gap between payroll taxes and the benefits they pay out. (The Committee for a Responsible Federal Budget says that's just seven years away, which is just a year earlier than trustees for both programs said insolvency would occur.) At that point, benefits will have to be cut, possibly substantially. The Committee for a Responsible Federal Budget says this bill makes the situation worse because by cutting taxes, especially by adding the extra $6,000 cut for taxpayers over age 65, it cuts the amount going into the trust funds. We'll have to wait to find out. Certainly, everyone understood there was a lot on the line — House Democratic Leader Hakeem Jeffries of New York broke the record for a House speech by speaking for 8 hours, 45 minutes ahead of the vote. (There's no filibuster in the House but each party's top leader can speak for as long as he or she likes as a debate wraps up.) For Republicans, it boosts some of their supporters' biggest priorities — such as increasing spending on military defense, shipbuilding, terminating environmental programs and battling illegal immigration — but if a health care crisis ensues because of Medicaid changes, or rural hospitals suffer, it could result in a huge blowback. And there's no question that GOP members who complained in the past about rising deficits will be accused of having their fingerprints all over them now. That could be a concern in Michigan for GOP members of Congress, including U.S. Rep. John James of Shelby Township, who is running for governor, and U.S. Rep. Tom Barrett, of Charlotte, running for reelection in a closely fought swing district. On the other hand, Democrats like U.S. Rep. Kristen McDonald Rivet of Bay City, who is in a swing district herself, could get tagged by Republicans for not backing a bill they say is meant to cut taxes and spending. It remains to be seen just how much the public will pay attention and which side, if either, pays a price. But if one side or the other does, it could be a big price to pay in next year's midterm elections, given that the GOP has a slim 220-212 vote majority. Contact Todd Spangler: tspangler@ Follow him on X @tsspangler. This story has been updated with additional information. This article originally appeared on Detroit Free Press: Trump's 'Big, Beautiful Bill' passes: 6 things to know
Yahoo
10-07-2025
- Business
- Yahoo
Michigan Republicans cheer, Democrats jeer passage of Trump's 'big, beautiful' bill
With a 218-214 vote in the U.S. House on the afternoon of July 3rd, President Donald Trump got his wish: passage of his "big, beautiful bill" cutting taxes, reducing spending and raising the nation's debt limit considerably. Michigan's seven Republican U.S. House members voted for it. The state's six Democratic House members voted against, decrying new restrictions on Medicare and food stamps, as well as the continuation of tax cuts they argue favor the wealthy and corporations more than working- and lower-income Americans. Here are some of the reactions to the passage of the legislation that now heads to Trump's desk to be signed into law: Democratic Gov. Gretchen Whitmer: 'Republicans in the U.S. House passed a reckless bill that threatens the health, security and economic stability of millions — including hundreds of thousands of Michiganders who stand to lose their Medicaid coverage, and countless working families who rely on SNAP (Supplemental Nutrition Assistance Program, or food stamps) to put food on the table. Nearly 15,000 Michiganders sent stories to me about how these cuts will devastate their lives... Today's vote shows those Republicans ignored their constituents, leaving them with higher costs and without the health care they'll need." U.S. Rep. (and gubernatorial candidate) John James, R-Shelby Township: "Today I voted yes... because it delivers on the promises President Trump and Republicans made in 2024... We're cutting taxes on tips and overtime, protecting Social Security, rebuilding American manufacturing and putting an end to handouts for illegal immigrants and able-bodied adults who won't work. This bill secures our border, strengthens our economy and keeps our word to the American people." U.S. Rep. (and U.S. Senate candidate) Haley Stevens, D-Birmingham: "I voted no on Donald Trump's billionaire tax handout for the people of Michigan who will have their healthcare taken away, food assistance stripped away, investments in manufacturing eliminated, and will be put further at risk due to rural hospitals shuttering... I will continue to stand up to this Administration every single day, until we finally see a deal that works for Michigan and the people I care so deeply about." U.S. Rep. Tim Walberg, R-Tipton: "Last November, 77 million people demanded change. Today, House Republicans delivered on that mandate to reverse four years of failed Democrat policies and extend the successful Trump tax cuts, which put more money back into the pockets of working families and empowered small businesses." U.S. Rep. Debbie Dingell, D-Ann Arbor: 'Why would anyone vote for this big bad bill? It is one of the most consequential, devastating, dangerous bills Congress has passed in recent history. It is going to rip health care away from 17 million people, make the biggest cuts to food assistance ever and ensure the poorest Americans get poorer while the richest get even richer." U.S. Rep. Lisa McClain, R-Bruce Township: 'This historic legislation delivers real results for Michigan families and businesses. This bill will create more opportunities for our local businesses to thrive and help hardworking Michiganders keep more of what they earn. We just avoided the largest tax increase in American history, reduced burdensome regulations, protected our most vulnerable citizens by sustaining Medicaid, and unleashed American energy. We are leaving behind Joe Biden's disastrous economic policies. Under President Trump's leadership, the golden age of America has just started.' More: Trump administration has moved to freeze $6.8 billion in education funds nationwide U.S. Rep. Rashida Tlaib, D-Detroit: 'This bill is an act of violence against our communities. At a time of extreme income and wealth inequality, while 60% of Americans are living paycheck to paycheck, this budget is absolutely devastating for the working families we represent. Trump's big budget betrayal will kick 17 million Americans off their health care, including over 450,000 people in Michigan, by making the largest cut to Medicaid in history. Republicans should be ashamed of themselves for saying the people losing their health care will just 'get over it' because 'we're all going to die.'" U.S. Rep. Bill Huizenga, R-Holland Township: 'This bill makes significant progress to eliminate waste, fraud, and abuse from both SNAP and Medicaid by implementing work requirements for able-bodied individuals without dependents. These commonsense reforms will preserve these important safety net programs for those who need it most — namely, low-income mothers, children, the elderly, and disabled Americans... I look forward to President Trump signing this legislation, delivering a massive win for hardworking Americans, and putting America back on track for an age of prosperity.' U.S. Rep. Kristen McDonald Rivet, D-Bay City: 'I voted no on Republicans' extreme package because life is already too expensive for Michigan families, and this bill is going to make it worse. Working families will lose their health care, children will go hungry, and our seniors will lose access to long-term care, all to pay for massive tax breaks for the ultra-wealthy. Everybody will see daily costs go up like health care, utility bills, and food to help (billionaires) Elon Musk and Jeff Bezos make more money.' U.S. Rep. Tom Barrett, R-Charlotte: "I joined my colleagues in passing the one, big, beautiful bill to prevent the largest tax hike in American history, lower energy costs and permanently secure our border – all while protecting the integrity of Medicaid and SNAP for those who need them most. This legislation will create thousands of good-paying jobs to boost our economy, ensure the middle class keeps more money in their pockets, and invest in a brighter future for America. It also delivers on promises made to hardworking families and businesses in Michigan: no tax on tips or overtime, permanent tax relief, an expanded Child Tax Credit, and more." U.S. Rep. Hillary Scholten, D-Grand Rapids: 'I just voted no on (the bill) for the good people of west Michigan — for our health care, for our children, for our farmers, for our seniors, for our veterans and for each and every one of you. You need no further evidence of how disastrous this bill will be than the narrow margin by which it passed and the hours upon hours that it took House Republicans to be convinced that this bill was good for their constituents." More: Passed at last: 6 Things to Know About Trump's 'Big, Beautiful Bill' U.S. Rep. John Moolenaar, R-Caledonia: "Michiganders can now be confident their taxes will not be raised at the end of the year, and that their tax dollars will not be used to pad the bottom line of Chinese companies (with the inclusion of Moolenaar's provision prohibiting companies affiliated with the Chinese Communist Party from receiving energy production tax credits) The one, big, beautiful bill is a win for Michigan families." U.S. Rep. Shri Thanedar, D-Detroit: "This big, ugly bill will cause 17 million people to lose access to healthcare, and take food off the table for 2 million more, all to give billionaires yet another tax break. My district has the fourth-highest SNAP participation rate in the country at 29%, and 47% of our district relies on Medicaid to get the healthcare they need to survive. My decision to vote no on this bill was the easiest I've had as an elected official, as these cuts will deeply harm every single person in my congressional district." Contact Todd Spangler: tspangler@ Follow him on X @tsspangler. This article originally appeared on Detroit Free Press: Republicans cheer, Democrats jeer passage of sweeping Trump bill
Wall Street Journal
27-06-2025
- Business
- Wall Street Journal
Bessent: Tariff Rulings Could Accelerate Debt Limit Deadline
The U.S. debt-limit deadline could arrive sooner if courts order the Treasury to pay back tariff revenue, Treasury Secretary Scott Bessent told reporters Friday. 'We're on the warning track,' he said. The deadlne 'could be moved forward if we're forced to rebate the tariff income by the courts.' Earlier this month, the U.S. Court of Appeals for the Federal Circuit extended its temporary pause of a trade court's decision that Trump exceeded his powers in imposing the tariffs.
Bloomberg
25-06-2025
- Business
- Bloomberg
US Extends Debt-Limit Special-Measures Period Through July 24
Treasury Secretary Scott Bessent told US lawmakers he's extending the latest period for deploying special accounting measures to keep within the debt limit through July, 24, 2025. The Treasury chief also repeated his May guidance to congressional leaders that they must act to increase or suspend the debt limit as soon as possible, before its scheduled August recess.
Bloomberg
25-06-2025
- Business
- Bloomberg
Bipartisan Policy Center Sees Debt-Limit X-Date Soon as Aug. 15
A closely watched independent think tank has updated its estimate for when the federal government risks running out of sufficient funds to pay its obligations on time if Congress fails to suspend or lift the nation's debt limit. The Bipartisan Policy Center now projects that the so-called X-date could come between Aug. 15 and Oct. 3. The BPC previously said between August and October. The estimate is in line with separate projections from the Congressional Budget Office for between mid-August and the end of September.
