Trump's tax cut could mean a nearly half-trillion-dollar cut to Medicare starting in 2027, CBO warns
Briefly

The Congressional Budget Office reported that President Donald Trump's tax and spending law may lead to automatic cuts to Medicare, potentially reducing funding by up to $491 billion from 2027 to 2034 if Congress does not intervene. Despite promises to protect Medicare, the $3.4 trillion deficit increase threatens essential programs. Historical responses suggest Congress might act to avert cuts, but bipartisan cooperation remains uncertain. Democrats criticized Republicans for prioritizing tax cuts for the wealthy, warning that cuts could burden families and rural hospitals already struggling with limited resources.
The CBO estimates that Medicare could potentially see as much as $491 billion in cuts from 2027 to 2034 if Congress does not act to mitigate cuts to federal programs.
Trump and Republicans pledged not to cut Medicare, but the estimated $3.4 trillion the law adds to the federal deficit creates the potential for cuts.
Democrats highlighted the potential cuts, emphasizing that Republican tax breaks would force substantial reductions in Medicare funding.
Rural hospitals may face exacerbated financial challenges if Medicare cuts proceed, compounding existing Medicaid issues.
Read at Fortune
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