On Friday, former President Donald Trump is anticipated to sign a comprehensive spending package into law during a festive Fourth of July picnic at the White House. This landmark legislation is poised to implement significant cutbacks on federal safety-net programs while simultaneously increasing funding for aggressive immigration enforcement. During a campaign-style rally in Iowa on Thursday evening, Trump heralded the bill's passage as a “birthday present for America,” despite vocal opposition from Democrats who have expressed their deep dissatisfaction with the package.
After months of intense deliberations, the spending bill narrowly passed the Senate by a single vote and subsequently made its way through the House with a vote tally of 219 to 213 on Thursday, garnering support from all but two Republican representatives. As highlighted by the Guardian, this sweeping legislation marks a significant victory for right-wing advocates who have long championed similar reforms, providing Trump with a substantial legislative achievement.
Once enacted, the bill is set to substantially reduce taxes, building upon the 2017 tax cuts introduced during Trump’s first term. While the legislation includes temporary exemptions for tips, overtime pay, and car loan interest, research from the Center on Budget and Policy Priorities suggests that the bill disproportionately favors the wealthy, with the richest Americans reaping the greatest tax benefits. This raises concerns about growing economic inequality in the United States.
Moreover, the law will introduce new restrictions on Medicaid, which provides essential healthcare services to low-income and disabled individuals, as well as the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps. Experts estimate that the cutbacks to Medicaid could leave approximately 11.8 million people without healthcare coverage, while around 8 million Americans may lose their SNAP benefits. Critics argue that these reductions will have catastrophic ripple effects on healthcare access nationwide.
Senator Raphael Warnock, a Democrat, condemned the bill on social media, stating, “This is highway robbery. The bill Republicans just passed steals from you to give to the rich.” Proponents of the legislation, however, assert that the changes to Medicaid and SNAP are intended to eliminate waste and fraud within these programs.
In addition to the cuts in social programs, the spending package allocates an astonishing $170 million for immigration enforcement, facilitating the Trump administration's push for mass deportations. Nicole Melaku, executive director of the National Partnership for New Americans, an organization advocating for immigrants' rights, criticized the bill, asserting, “This disgraceful, anti-immigrant budget hands the Trump administration a blank check to further ramp up its shameful efforts to terrorize American communities and separate families.”
Melaku further emphasized that instead of prioritizing access to healthcare and wellness, the package diverts funds to tax cuts for large corporations while increasing resources for hiring immigration agents and constructing detention facilities.
The Trump administration has already been criticized for its aggressive tactics against immigrant communities, ramping up resources for immigration enforcement operations. Meg McCarthy, executive director of the National Immigrant Justice Center, cautioned, “This budget promises to supercharge US Immigration and Customs Enforcement arrests that disappear community members, leave children parentless, and threaten constitutional and due-process rights for all of us.” Recent analyses indicate that arrests of undocumented immigrants without any criminal history have surged following directives from top White House officials to escalate enforcement actions.
Last month, the Trump administration briefly paused enforcement actions at farms and restaurants following pushback from leaders in the agricultural and hospitality sectors. However, during the rally in Iowa, Trump reiterated the need for flexibility regarding large-scale enforcement on farms, stating, “If a farmer is willing to vouch for these people in some way... I think we’re going to have to just say that’s going to be good, right?”
Beyond tax cuts and social program restrictions, the bill seeks to eliminate green energy incentives established under President Joe Biden, posing yet another obstacle to combating the climate crisis. Economists predict that the US budget deficit will swell as a result of this legislation, drawing criticism even from some allies of Trump. The non-partisan Congressional Budget Office estimates that the bill will add a staggering $3.3 trillion to the nation's debt through 2034, leading to potential conflicts with elements of the Republican party.
Thomas Massie, one of the two Republicans who opposed the bill, articulated his concerns, stating, “I opposed the spending bill because it will significantly increase US budget deficits in the near term, negatively impacting all Americans through sustained inflation and high interest rates.”
