Republicans Sneak Massive Medicare Cuts Into Their Horrid Tax Bill

Each day, new and worse cuts keep appearing in the Republicans’ budget bill.

The nonpartisan Congressional Budget Office issued a report Tuesday finding that the GOP’s budget bill would automatically trigger over $500 billion in automatic cuts to Medicare, exposing President Trump for lying that Medicare wouldn’t be touched. The CBO estimates that there would be about $45 billion in cuts in 2026, and $490 billion in cuts between 2027 and 2034.

House Democrats immediately pounced. At a House Rules Committee meeting early Wednesday morning, ranking member Jim McGovern asked Representative Brendan Boyle, the ranking member on the House Budget Committee, whether the bill would trigger cuts to Medicare.

“Look, this is really the breaking news, because when the Budget Committee kicked off this process approximately three months ago, there was a commitment by President Trump that there would be no Medicare cuts in this piece of legislation, and indeed, over the last several months, there has been no discussion of Medicare at all,” Boyle responded.

“Because of the size of the deficits, because of the PAYGO, or Pay as You Go Act, that would trigger sequestration of Medicare, and it would total over $500 billion. The official figure that CBO confirms is $535 billion in cuts to Medicare,” Boyle continued, adding that the bill doesn’t waive statutory PAYGO.

In March, Trump promised that there would be no cuts to Medicare, Medicaid, or Social Security, with the White House even issuing a fact sheet attacking media reports that he and Elon Musk were open to such cuts. Now, though, the Republican budget bill includes $880 billion in cuts, largely to Medicaid, and Tuesday’s revelation confirms that Medicare cuts will be automatically triggered if the bill passes.

Some House Republicans are probably not going to tolerate Medicare cuts, with so many of the GOP’s elderly supporters depending on the program, and the budget needs almost unanimous Republican support to pass the House. Could these cuts sink the bill? And how will the White House explain that Trump won’t be keeping his promise?

Republicans want to add work requirements to Medicaid, but having to work themselves is apparently a problem.

Representative Ralph Norman was caught falling asleep in his chair late Tuesday as the House Rules Committee discussed the future of a Republican-led reconciliation bill that aims to strip Medicaid coverage from millions of Americans.

Conservative lawmakers have tried to jam the president’s “big, beautiful” bill through the legislature as quickly as possible, forcing themselves and their colleagues to debate its details when the American public isn’t watching, including over the weekend and in the dead of night.

The bill proposes cutting upward of $880 billion from the public health insurance program for low-income Americans in order to afford a multitrillion-dollar tax cut extension for multimillionaires and corporations.

But just a handful of days into the process, it’s clear that Republicans are struggling to keep up with their own terrible timing.

Norman’s siesta was definitely noticed by Democratic Representative Joe Neguse, who accused the tired politician Wednesday of having “snuck out for a little shut-eye” while the committee debated adding work requirements to the public health insurance program during another late-night hearing.

“Obviously, this isn’t reasonable. It does not make sense. It is not transparent to hold meetings at 3 a.m. on a bill of this size, and this scope, and this scale,” Neguse said. “You could just as easily [have] delayed it five hours, let the American public have an opportunity to listen to this debate, and then vote on the bill on Thursday.

“This false sense of urgency for five or six hours makes no sense,” Neguse added.

The Republican bill proposes kicking 8.6 million Americans off Medicaid over the next 10 years, according to the Congressional Budget Office, though that figure could be the tip of the iceberg if the caucus successfully adds work requirements to the public health insurance program.

Such a move could eventually strip upward of 36 million Americans of their health coverage—half of Medicaid’s 72 million enrollees, according to a February report by the Center on Budget and Policy Priorities, which warned that eligible Medicaid recipients could get strung up in the bureaucracy of increasingly frequent eligibility checks, potentially lapsing coverage for individuals who are entitled to the benefit.

But tampering with the third rail of American politics comes at Trump’s behest, as his acolytes in Congress work to make an enormously expensive tax cut—that won’t add any noticeable benefit for the majority of Americans—more palatable to their base. Trump’s bill is estimated to add somewhere between $3.8 trillion and $5.3 trillion to the national debt.

Despite the pressure, Norman might have felt it kosher to doze off since he had, apparently, made up his mind on the votes days ago.

The South Carolina lawmaker was one of four Republicans to oppose the bill on Friday, when for a brief moment it appeared that the massively expensive tax extension wouldn’t pass muster with conservative budget hawks. But by Monday, Norman had changed his tune, telling Politico that he would advance it to the chamber floor during the committee’s Wednesday vote.

“Unless something changes,” Norman said, “the body has a right [to consider it].”

The Congressional Budget Office has reported that Trump’s “big, beautiful” spending bill will continue the longtime Republican tradition of giving tax cuts to the wealthy while spiting the poor. 

A CBO estimate Tuesday found that the GOP bill would decrease household resources for the poorest 10 percent in America, with households expected to lose 2 percent of their income by 2027 and 4 percent of their income by 2027 through the loss of programs like Medicaid, Medicare, and the Supplemental Nutrition Assistance Program, or SNAP. 

In contrast, the top 10 percent of Americans would see their income increase by  4 percent for households by 2027 and 2 percent by 2033, “mainly because of reductions in the taxes they owe.”

The CBO also noted that Trump’s bill would add $3.8 trillion to the national debt over the next decade. 

“The nonpartisan CBO’s unprecedented analysis has confirmed what Democrats have known to be true—the GOP Tax Scam will hurt working families the most while delivering massive tax breaks for billionaires like Elon Musk,” Democratic Senate Leader Hakeem Jeffries said in a statement. “Any claims otherwise are intentionally deceptive regarding the Republican plans to rip health care away from nearly 14 million Americans and take food out of the mouths of millions of people, including children and seniors.… For a party that claims to be for the working class, this analysis indicates the opposite.”

The Republicans are dismissing the report entirely. 

“The CBO score is wrong, the CBO has been wrong repeatedly, it was wrong when it projected budget surpluses with the Inflation Reduction Act, the Green New Deal,” GOP Representative Andy Barr claimed on CNN Wednesday morning. “It was wrong when they scored the first Trump tax cuts, they were wrong by over a trillion dollars. Why? Because the CBO doesn’t do this scoring dynamically, and what we know about this bill, it’s jet fuel for this economy.” 

“Congressman, you say the CBO is wrong, but you have—your fellow Republicans are concerned because the CBO is the only nonpartisan scorekeeper that Congress has,” CNN anchor Kate Bolduan replied.

It’s ironic that Barr brought up Trump’s 2017 bill, which also contained massive tax cuts for the rich that the GOP claimed would pay for themselves. They lied then too.

Elon Musk’s Department of Government Efficiency has attempted to expand its influence beyond agencies within the executive branch to distant corners of the federal government, and then some.

NPR reported Tuesday that it had identified nearly 40 organizations that DOGE had attempted to access—some of which were outside of the bounds of the federal government.

Employees at the Office of Government Accountability, or GAO, received a message from a DOGE staffer last week, asking to discuss having a team from Musk’s non-agency assigned to work with them. The offer was quickly rebuffed, as the GAO works for Congress, not the executive branch. It also happens to function as the investigative arm responsible for reporting on the president’s compliance with the Impoundment Control Act—which Donald Trump has repeatedly threatened to violate.

GAO wasn’t the only organization to push back against DOGE’s overreach. Late last month, Trump attempted to fire three board members at the Corporation for Public Broadcasting, an independent nonprofit that disburses taxpayer funds to public stations for educational and cultural programming, but the president’s request was denied.

Shortly after, Trump signed an executive order directing the CPB to stop allocating funds to PBS and NPR. The CPB disburses $535 million in taxpayer funds, an amount that is apportioned by Congress, placing the funding outside of Trump’s realm of control. But the Trump administration wasn’t done: A message arrived with the other two board members from DOGE asking to discuss bringing in a team of cost-cutters.

Crucially, CPB is not part of the executive branch or even the federal government. And funnily enough, DOGE didn’t even send its request to the right email addresses.

Other nongovernmental organizations where DOGE attempted to assign teams include Legal Services Corporation, a nonprofit established by Congress in 1974 that funds 130 legal aid organizations, and NeighborWorks America, which provides grants, training, and assistance to community development groups and was created by Congress in 1978.

The laws creating those organizations state that “the corporation shall not be considered a department, agency, or instrumentality of the Federal Government.”

DOGE also reached out to the Vera Institute of Justice, a private nonprofit that was not created by Congress.

Republicans are forcing through the president’s “big, beautiful” reconciliation bill despite opposition from within their party, and despite opposition from the American public.

While debating the details of the Medicaid-slashing tax cuts late Tuesday, Massachusetts Democratic Representative Jim McGovern pointed out that the lawmakers in the room were not elected to strip away public services from their constituents.

“I wasn’t sent here to vote for trash like this,” he charged.

The bill proposes $880 billion in Medicaid cuts in order to afford an extension to Donald Trump’s 2017 tax plan, which would overwhelmingly benefit multimillionaires and corporations.

“If I am understanding the numbers correctly, the latest version of their tax scam, the top 0.1 percent stand to gain $255,000 on average in 2027 alone,” McGovern said before the committee. “That is $700 a day every day.

“The people who make over $1 million a year will also get their pockets lined. On average, these millionaires will have an additional $81,500 per year but pennies for everybody else,” the Massachusetts lawmaker continued. “For those earning less than $50,000 a year, the average benefit is $265, less than one dollar per day.

“And that’s laughable when you begin to look at the gaps that are going to be created by these cuts in other programs,” he added.

The Republican bill would kick 8.6 million Americans off of Medicaid over the next 10 years, according to the Congressional Budget Office, though that number could be much larger considering some of the stipulations the GOP hopes to add to the program to limit eligibility, such as adding work requirements to the public health insurance program.

That could eventually strip upward of 36 million Americans of their health coverage—half of Medicaid’s 72 million enrollees, according to a February report by the Center on Budget and Policy Priorities, which warned that eligible Medicaid recipients could get strung up in the bureaucracy of increasingly frequent eligibility checks, potentially lapsing coverage for individuals who are entitled to the benefit.

But tampering with the third rail of American politics comes at Trump’s behest, as his acolytes in Congress work to make an enormously expensive tax cut—that won’t add any noticeable benefit for the majority of Americans—more palatable to their base. Trump’s bill is estimated to add somewhere between $3.8 trillion and $5.3 trillion to the national debt.

“This is not a governing philosophy. It is a scam,” McGovern said. “For the life of me, I cannot understand why you are doing this. Why the hell did you choose a career of public service just to do this? Just to rip away the health care and food assistance and security of working- and middle-class Americans.

“I don’t understand this, I don’t understand the cruelty,” McGovern added.

Eric Trump on Wednesday broke ground on a $1.5 billion golf course in Vietnam. The deal will “focus on developing 5-star hotels, championship-style golf courses, and luxurious residential estates and unparalleled amenities” near Vietnam’s capital, Hanoi, according to a statement in October.

Eric Trump will also meet with Vietnamese officials on Thursday to discuss plans for a skyscraper in the southern business district.

“Vietnam has tremendous potential for luxurious hospitality and entertainment,” said Trump, who serves as senior vice president of his father’s Trump Organization. “We are incredibly excited to enter this dynamic market.”

This news comes as Vietnam is in the midst of an attempt to avoid Trump’s 46 percent retaliatory tariffs on the country. Vietnam has made multiple concessions to the White House already, including a deal with Elon Musk’s Starlink and a pledge to crack down on counterfeit goods. President Trump also just made a massive arms deal with Saudi Arabia and accepted a $400 million luxury jet from Qatar.

The Trump administration is deporting immigrants to countries they aren’t from and refusing to tell judges where exactly, claiming that the information is classified.

On Tuesday, U.S. District Judge Brian Murphy ordered the government to maintain its custody of immigrants on a plane that the immigrants’ attorneys said was headed to South Sudan, and said that authorities might be violating an injunction he issued in late March. The judge’s order came after a hearing in which administration officials refused to say where the flight was or even where it was going.

Lawyers for the immigrants told Murphy that at least two of them were told they were being sent to South Sudan, a country with instability, violence, and political unrest that the State Department warns Americans not to visit. One Justice Department lawyer told Murphy that a Vietnamese man was deported, but refused to provide any details about the flight, including how many other immigrants were on it.

“Where is the plane?” Murphy asked DOJ lawyer Elianis Perez.

“I’m told that that information is classified, and I am told that the final destination is also classified,” Perez responded, claiming that no court order was violated because the man wasn’t afraid of deportation.

But then Murphy asked Perez the authority the government was invoking to classify the location of the flight.

“I don’t have the answer to that,” Perez responded.

Murphy had ordered the government in March not to deport immigrants to countries they aren’t from without allowing them time to challenge their removal in court. He warned the administration that any government official who took part in Tuesday’s flight and knew about the order, including the pilots, could face criminal penalties.

“Based on what I have been told,” Murphy said, “this seems like it may be contempt.”

On multiple occasions, the administration has sent immigrants to countries they aren’t from, all over the world, including Rwanda, El Salvador, Costa Rica, and Panama. The administration has resisted any attempts at oversight, and even judicial orders to stop or slow their actions, refusing to turn planes around. Secretary of State Marco Rubio even claimed he doesn’t have to listen to court orders.

Weeks after a judge ordered the government to allow immigrants some recourse to challenge their deportations, Trump officials still won’t listen. Will the courts have to enforce criminal sanctions against government officials to compel this administration to follow the law?

Earlier this month, the Trump administration’s own intelligence agencies found that Venezuela does not control the Tren de Aragua gang, directly contradicting Trump’s justification for invoking the wartime Alien Enemies Act of 1798 to deport immigrants. But instead of admitting their mistake, they decided to lie.

“We need to do some rewriting … so this document is not used against the DNI or POTUS,” said Joe Kent, Tulsi Gabbard’s chief of staff, according to leaked emails viewed by The New York Times. Kent, along with former acting National Intelligence Council head Michael Collins, largely rewrote the memo together. 

The original memo stated, “While Venezuela’s permissive environment enables TDA to operate, the Maduro regime probably does not have a policy of cooperating with TDA and is not directing TDA movement to and operations in the United States,” according to the Times.

Trump has been claiming the exact opposite since he invoked the Alien Enemies Act of 1798 in March to detain and deport Venezuelan immigrants without basic due process.

To support Trump’s use of the wartime powers act, Kent began to piece a story together in the hope that it’d make Trump’s actions look more reasonable.

“Flooding our nation with ‘migrants’ and especially ‘migrants’ who are part of a violent criminal gang is the action of a hostile nation, even if the gov of Venezuela isn’t specifically tasking or enabling TDA’s operations,” Kent wrote, in an email obtained by the Times. 

“Let’s just come out and say [Tren de Aragua] leaders are given sanctuary in Venezuela as their gang members commit horrendous crimes in America, then we can provide the context about our exact knowledge of relationship between TDA and the Venezuelan government,” he continued. Kent even went so far as to say that Tren de Aragua didn’t need logistical support from the Venezuelan government because former President Joe Biden had given it to them in his first term, another lie. 

This is clearly an administration that is making up justifications for its draconian policies as it goes. Whether it’s habeas corpus or birthright citizenship, this administration will look Americans in the eye and lie, over and over again, until their version of events is taken as truth. 

The president unveiled his designs for a “Golden Dome” defense system Tuesday, promising that the massive missile defense sytem—modeled on Israel’s “Iron Dome”—would protect America from international threats.

But when asked by a reporter whether military leaders actually want this supposed upgrade, Donald Trump couldn’t explain himself.

“Have military commanders asked for this system specifically?” asked a reporter. “Because [North American Aerospace Defense Command] had said previously that the current system was adequate, so what does this get the United States that isn’t already—”

“Somebody said the current system is adequate? There really is no current system,” the commander in chief interrupted. “We have certain areas of missiles and missile defense, but there’s no system. We just have some very capable weapons.

“This is a—there’s never been something like this, this is something that’s going to be very protective. Rest assured there won’t be anything like this, nobody else could be capable of building it, either,” Trump said.

The reporter then asked again if the military had actually asked for the space-based missile defense system, to which Trump replied that he had suggested it and military leaders “loved the idea.”

“It’s the way it’s got to be, right?” Trump said, leaning over the Resolute Desk.

Trump requested that Congress appropriate $25 billion in its most recent tax bill to get his Golden Dome dream off the ground, claiming that a final price tag would waver around $175 billion on a projected three-year timeline. But those numbers fall far below what the Congressional Budget Office calculated. Last month, the congressional analysis group estimated that the space-based components of the plan alone would cost more than half a trillion dollars over the next 20 years.

“It’s amazing how easy this one is to fund,” Trump said Tuesday, sounding exceedingly confident that he would be able to secure money for the project from Congress, days after Republicans lapsed on his reconciliation bill for being too expensive. “People actually love it.”

The gold-obsessed real estate developer formally plotted out his Golden Dome idea in a January 27 executive order, throwing the responsibility on Defense Secretary Pete Hegseth to figure out the details. But since then, critics have wondered if the massively expensive program would cut into funding for America’s preexisting defense programs, including an Air Force project replacing 400 intercontinental ballistic missiles from the 1970s with updated versions.

The Trump administration’s economic plan has dashed America’s credit score, rocking the nation’s lending reputation. And experts warn this could be the beginning of the end.

Credit firm Moody’s downgraded the nation’s score Friday, reporting that it appears increasingly unlikely that the U.S. economy will be able to keep up with its rising debt and interest payments, rattling what was once an unshakable confidence in U.S. growth.

Major international lending entities, such as Deutsche Bank, viewed the score drop as just another indicator that time is running out on solving America’s national debt.

“Yesterday felt like we were somewhere along the line of a ‘death by a thousand cuts’ with regards to the U.S. fiscal situation,” Deutsche Bank’s Jim Reid wrote, in a note obtained by Fortune Tuesday. “Hard to know where in that thousand we are but probably much nearer a thousand than at zero even as yesterday saw an initial sell-off reverse as the session went on.

“At the end of the day the loss of the final U.S. triple-A rating late on Friday night doesn’t change anything much immediately but it keeps the drip, drip, drip of poor fiscal news building up against the debt sustainability dam in the background.”

Ratings from Moody’s and other firms inform companies and groups both foreign and domestic regarding how much they need to pay in order to borrow money.

Moody’s was the last of the three major bond-rating agencies to downgrade America’s formerly spotless score, signaling that the nation is a bigger credit risk than it has been in decades. It also indicates that the time in which the U.S. could borrow seemingly infinite sums of money—without the risk of inflation—is coming to a close.

America’s national debt is currently more than $36.8 trillion, as of the time of publishing.

The Trump administration, however, has not yet looked inward for an explanation to the sour score. Instead, it has pushed blame onto the Biden administration, claiming that Republicans are still working overtime to trim the national deficit while they push forward a reconciliation package that would add somewhere between $3.8 trillion and $5.3 trillion to the national debt to afford tax cuts for multimillionaires and corporations.

“I do want to assure everyone that the deficit is a very significant concern for this administration,” top White House economist Stephen Miran told reporters Monday. “We’re determined to bring it down and to undo the damage to the fiscal health of the United States that was wrought by the Biden administration and its reckless policies.”

Treasury Secretary Scott Bessent, meanwhile, brushed off the score downgrade as a “lagging indicator” of U.S. performance, urging investors to disregard the news.

Trump enacted his sweeping tariff plan in order to offset the jaw-droppingly expensive extension to his 2017 tax cuts, but America has yet to see any gains from the economic agenda. Instead, the tariffs have destabilized American markets while simultaneously undermining U.S. dominance in the global economy.

Whether or not the deficit actually affects the economy is still in debate. But having investors believe in the health of the economy is critical.

“The government deficit isn’t a problem until investors think it is,” Callie Cox, chief market strategist at Ritholtz Wealth Management, told Axios Monday. “And they’re increasingly telling us that the deficit is a problem.”