{"id":74190,"date":"2025-07-17T12:30:38","date_gmt":"2025-07-17T19:30:38","guid":{"rendered":"https:\/\/lapost.us\/?p=74190"},"modified":"2025-07-28T12:31:27","modified_gmt":"2025-07-28T19:31:27","slug":"sweeping-budget-and-spending-law-leaves-millions-uninsured-while-adding-trillions-to-federal-deficit","status":"publish","type":"post","link":"https:\/\/lapost.us\/?p=74190","title":{"rendered":"Sweeping Budget and Spending Law Leaves Millions Uninsured, While Adding Trillions to Federal Deficit"},"content":{"rendered":"<div class=\"td_block_wrap tdb_single_author tdi_65 td-pb-border-top td_block_template_1 tdb-post-meta\" data-td-block-uid=\"tdi_65\">\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-author-name-wrap\"><span class=\"tdb-author-by\">By<\/span><a class=\"tdb-author-name\" href=\"https:\/\/americancommunitymedia.org\/author\/sunita\/\">Sunita Sohrabji<\/a><\/div>\n<\/div>\n<\/div>\n<div class=\"td_block_wrap tdb_single_date tdi_66 td-pb-border-top td_block_template_1 tdb-post-meta\" data-td-block-uid=\"tdi_66\">\n<div class=\"tdb-block-inner td-fix-index\"><i class=\"tdb-date-icon tdc-font-fa tdc-font-fa-calendar\"><\/i><time class=\"entry-date updated td-module-date\" datetime=\"2025-07-17T11:43:33-07:00\">Jul 17, 2025<\/time><\/div>\n<\/div>\n<div class=\"td_block_wrap tdb_single_subtitle tdi_67 td-pb-border-top td_block_template_1\" data-td-block-uid=\"tdi_67\">\n<div class=\"tdb-block-inner td-fix-index\">\n<p>\u201cThis isn\u2019t just a bill. It\u2019s a redefinition of who gets to be protected in America and who gets left behind.\u201d \u2014 Natasha Sarin, president of the Yale Budget Lab.<\/p>\n<\/div>\n<\/div>\n<div class=\"td_block_wrap tdb_single_featured_image tdi_68 tdb-content-horiz-left td-pb-border-top td_block_template_1\" data-td-block-uid=\"tdi_68\">\n<div class=\"tdb-block-inner td-fix-index\">\n<figure><img loading=\"lazy\" decoding=\"async\" class=\"entry-thumb td-animation-stack-type0-2\" title=\"medicaid protest\" src=\"https:\/\/americancommunitymedia.org\/wp-content\/uploads\/2025\/07\/medicaid-protest.jpg\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" srcset=\"https:\/\/americancommunitymedia.org\/wp-content\/uploads\/2025\/07\/medicaid-protest.jpg 1200w, https:\/\/americancommunitymedia.org\/wp-content\/uploads\/2025\/07\/medicaid-protest-300x200.jpg 300w, https:\/\/americancommunitymedia.org\/wp-content\/uploads\/2025\/07\/medicaid-protest-1024x683.jpg 1024w, https:\/\/americancommunitymedia.org\/wp-content\/uploads\/2025\/07\/medicaid-protest-768x512.jpg 768w, https:\/\/americancommunitymedia.org\/wp-content\/uploads\/2025\/07\/medicaid-protest-150x100.jpg 150w, https:\/\/americancommunitymedia.org\/wp-content\/uploads\/2025\/07\/medicaid-protest-696x464.jpg 696w, https:\/\/americancommunitymedia.org\/wp-content\/uploads\/2025\/07\/medicaid-protest-1068x712.jpg 1068w\" alt=\"\" width=\"1200\" height=\"800\" \/><figcaption class=\"tdb-caption-text\">ACoM file photo<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<div class=\"td_block_wrap tdb_single_content tdi_69 td-pb-border-top td_block_template_1 td-post-content tagdiv-type\" data-td-block-uid=\"tdi_69\">\n<div class=\"tdb-block-inner td-fix-index\">\n<p>The newly passed federal legislation dubbed by Republicans as the \u201cBig, Beautiful Bill\u201d is poised to trigger a seismic shift in the U.S. healthcare and fiscal landscape.<\/p>\n<p>Marketed as a tax cut package, the new law also constitutes the most substantial rollback of health coverage since the Affordable Care Act was enacted in 2010. It threatens to leave up to 16 million Americans uninsured while increasing the federal deficit by as much as $4 trillion over the next decade.<\/p>\n<p>\u201cThis bill wasn\u2019t framed as healthcare reform,\u201d said Larry Levitt, executive vice president for health policy at KFF. \u201cBut it is effectively a partial repeal of the ACA. It will reduce federal support for health coverage more than any legislation in history,\u201d he said at a July 11 American Community Media news briefing.<\/p>\n<figure class=\"wp-block-embed wp-embed-aspect-16-9 wp-has-aspect-ratio  is-type-video is-provider-youtube wp-block-embed-youtube\">\n<div class=\"wp-block-embed__wrapper video-seo-youtube-embed-wrapper\">\n<div class=\"video-seo-youtube-player\" data-id=\"9jQ71AWUlzg\">\n<div class=\"video-seo-youtube-embed-loader\" tabindex=\"0\" role=\"button\" data-id=\"9jQ71AWUlzg\" aria-label=\"Load YouTube video\"><picture class=\"video-seo-youtube-picture\"><source class=\"video-seo-source-to-maybe-replace\" srcset=\"https:\/\/i.ytimg.com\/vi\/9jQ71AWUlzg\/maxresdefault.jpg\" media=\"(min-width: 801px)\" \/><source class=\"video-seo-source-hq\" srcset=\"https:\/\/i.ytimg.com\/vi\/9jQ71AWUlzg\/hqdefault.jpg\" media=\"(max-width: 800px)\" \/><img loading=\"lazy\" decoding=\"async\" class=\"td-animation-stack-type0-2\" src=\"https:\/\/i.ytimg.com\/vi\/9jQ71AWUlzg\/hqdefault.jpg\" alt=\"\" width=\"480\" height=\"360\" \/><\/picture>\n<div class=\"video-seo-youtube-player-play\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/figure>\n<p><em>Larry Levitt, Executive Vice President for Health Policy at KFF, discusses the budget bill Trump signed into law July 4, and the impacts it will have on the healthcare system and healthcare affordability.<\/em><\/p>\n<p>Initial estimates from the Congressional Budget Office suggest the law will reduce federal health spending by more than $1 trillion, largely by cutting Medicaid and health insurance subsidies. About 11.8 million people are expected to lose coverage due to provisions in the bill. And as tax credits for health premiums expire at the end of this year, that number is expected to climb to 16 million.<\/p>\n<h2 id=\"h-healthcare-access-cut-for-millions\" class=\"wp-block-heading\">Healthcare Access Cut for Millions<\/h2>\n<p>Among the most controversial provisions is a new Medicaid work requirement for adults who became eligible under ACA expansion. While 90% of these individuals are working or would qualify for an exemption, bureaucratic red tape is expected to cause 4.8 million people to lose coverage simply by failing to navigate the reporting process.<\/p>\n<p>Other changes include:<\/p>\n<ul class=\"wp-block-list\">\n<li>Requiring re-enrollment in Medicaid every six months, rather than annually.<\/li>\n<li>Imposing optional co-pays of up to $35 for individuals above the poverty line.<\/li>\n<li>Restricting how states fund their share of Medicaid, likely forcing cuts to provider payments.<\/li>\n<\/ul>\n<p>The cuts are expected to hit rural hospitals especially hard, where margins are already thin. A one-time $50 billion rural health fund was included in the bill to offset some of these impacts, but it is temporary, while the Medicaid cuts are permanent.<\/p>\n<p>\u201cSome hospitals may not close immediately, but they\u2019re looking down the road. If they see a steady decline in payments, closures will accelerate,\u201d Levitt predicted. Many residents of America could simply lose all access to health care, he said.<\/p>\n<h2 id=\"h-aca-changes-and-immigrant-exclusions\" class=\"wp-block-heading\">ACA Changes and Immigrant Exclusions<\/h2>\n<p>The ACA\u2019s insurance marketplace also faces major upheaval. New income verification procedures will make it harder to enroll and eliminate automatic renewals. A particularly contentious provision removes eligibility for ACA coverage from many lawfully present immigrants, including refugees, asylees, and those under Temporary Protected Status. Medicaid and Medicare eligibility for these populations is also curtailed.<\/p>\n<p>\u201cThis isn\u2019t about undocumented immigrants, who have never qualified for federal health coverage,\u201d Levitt noted. \u201cThese are legal residents, and now they\u2019re being cut off.\u201d<\/p>\n<figure class=\"wp-block-embed wp-embed-aspect-16-9 wp-has-aspect-ratio  is-type-video is-provider-youtube wp-block-embed-youtube\">\n<div class=\"wp-block-embed__wrapper video-seo-youtube-embed-wrapper\">\n<div class=\"video-seo-youtube-player\" data-id=\"YMckGdxpUcE\">\n<div class=\"video-seo-youtube-embed-loader\" tabindex=\"0\" role=\"button\" data-id=\"YMckGdxpUcE\" aria-label=\"Load YouTube video\"><picture class=\"video-seo-youtube-picture\"><source class=\"video-seo-source-to-maybe-replace\" srcset=\"https:\/\/i.ytimg.com\/vi\/YMckGdxpUcE\/maxresdefault.jpg\" media=\"(min-width: 801px)\" \/><source class=\"video-seo-source-hq\" srcset=\"https:\/\/i.ytimg.com\/vi\/YMckGdxpUcE\/hqdefault.jpg\" media=\"(max-width: 800px)\" \/><img loading=\"lazy\" decoding=\"async\" class=\"td-animation-stack-type0-2\" src=\"https:\/\/i.ytimg.com\/vi\/YMckGdxpUcE\/hqdefault.jpg\" alt=\"\" width=\"480\" height=\"360\" \/><\/picture>\n<div class=\"video-seo-youtube-player-play\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/figure>\n<p><em>Larry Levitt, Executive Vice President for Health Policy at KFF, explains the ways the new budget law will impact access to healthcare for immigrants with legal status as well and those who are undocumented.<\/em><\/p>\n<h2 id=\"h-stark-health-and-mortality-consequences\" class=\"wp-block-heading\">Stark Health and Mortality Consequences<\/h2>\n<p>Yale professor Natasha Sarin, president of the Yale Budget Lab, said the bill will likely lead to a sharp increase in preventable deaths.<\/p>\n<p>\u201cEstimates show about 28,000 lives were saved over a decade due to those expansions. Reversing them, plus letting the ACA tax credits expire, could result in over 100,000 and possibly as many as 200,000 excess deaths over the next 10 years,\u201d said Sarin at the July 11 ACoM press briefing.<\/p>\n<p>\u201cThese cuts are especially harmful to vulnerable groups: the elderly, the sick, and immigrant communities, who are already on the edge of the healthcare system,\u201d she said.<\/p>\n<figure class=\"wp-block-embed wp-embed-aspect-16-9 wp-has-aspect-ratio  is-type-video is-provider-youtube wp-block-embed-youtube\">\n<div class=\"wp-block-embed__wrapper video-seo-youtube-embed-wrapper\">\n<div class=\"video-seo-youtube-player\" data-id=\"vtDzBUD_lbs\">\n<div class=\"video-seo-youtube-embed-loader\" tabindex=\"0\" role=\"button\" data-id=\"vtDzBUD_lbs\" aria-label=\"Load YouTube video\"><picture class=\"video-seo-youtube-picture\"><source class=\"video-seo-source-to-maybe-replace\" srcset=\"https:\/\/i.ytimg.com\/vi\/vtDzBUD_lbs\/maxresdefault.jpg\" media=\"(min-width: 801px)\" \/><source class=\"video-seo-source-hq\" srcset=\"https:\/\/i.ytimg.com\/vi\/vtDzBUD_lbs\/hqdefault.jpg\" media=\"(max-width: 800px)\" \/><img loading=\"lazy\" decoding=\"async\" class=\"td-animation-stack-type0-2\" src=\"https:\/\/i.ytimg.com\/vi\/vtDzBUD_lbs\/hqdefault.jpg\" alt=\"\" width=\"480\" height=\"360\" \/><\/picture>\n<div class=\"video-seo-youtube-player-play\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/figure>\n<p><em>Natasha Sarin, Professor, Yale Law School and Yale School of Management, explains the ways in which Trump\u2019s economic policies redistribute wealth from the bottom up, and why low-income households bear the financial burdens of his tax cuts and tariffs.<\/em><\/p>\n<h2 id=\"h-exploding-the-federal-debt\" class=\"wp-block-heading\">Exploding the Federal Debt<\/h2>\n<p>Despite Republican claims that the bill reduces government waste and improves efficiency, its fiscal implications tell a different story. Sarin warned that the bill\u2019s tax cuts, paired with temporary gimmicks, are likely to explode the federal debt.<\/p>\n<p>\u201cIf you remove the sunsets and assume the tax provisions become permanent \u2014 as lawmakers almost always try to do \u2014 this package will increase the debt-to-GDP ratio from 100% today to 135% by 2035,\u201d she said. \u201cThat\u2019s an additional $4 trillion in deficits.\u201d<\/p>\n<p>Rising deficits will have broader economic consequences. \u201cHigher borrowing costs for the government will push up interest rates across the board\u2014mortgages, car loans, student loans, and small business lending will all get more expensive. It\u2019s a drag on the economy, and it will shrink GDP over time,\u201d predicted Sarin.<\/p>\n<figure class=\"wp-block-embed wp-embed-aspect-16-9 wp-has-aspect-ratio  is-type-video is-provider-youtube wp-block-embed-youtube\">\n<div class=\"wp-block-embed__wrapper video-seo-youtube-embed-wrapper\">\n<div class=\"video-seo-youtube-player\" data-id=\"0cJg4eY5WiM\">\n<div class=\"video-seo-youtube-embed-loader\" tabindex=\"0\" role=\"button\" data-id=\"0cJg4eY5WiM\" aria-label=\"Load YouTube video\"><picture class=\"video-seo-youtube-picture\"><source class=\"video-seo-source-to-maybe-replace\" srcset=\"https:\/\/i.ytimg.com\/vi\/0cJg4eY5WiM\/maxresdefault.jpg\" media=\"(min-width: 801px)\" \/><source class=\"video-seo-source-hq\" srcset=\"https:\/\/i.ytimg.com\/vi\/0cJg4eY5WiM\/hqdefault.jpg\" media=\"(max-width: 800px)\" \/><img loading=\"lazy\" decoding=\"async\" class=\"td-animation-stack-type0-2\" src=\"https:\/\/i.ytimg.com\/vi\/0cJg4eY5WiM\/hqdefault.jpg\" alt=\"\" width=\"480\" height=\"360\" \/><\/picture>\n<div class=\"video-seo-youtube-player-play\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/figure>\n<p><em>Natasha Sarin, Professor, Yale Law School and Yale School of Management, explains why Trump\u2019s new spending package will lead to higher costs for consumers and ultimately a smaller national economy.<\/em><\/p>\n<h2 id=\"h-regressive-economic-effects\" class=\"wp-block-heading\">Regressive Economic Effects<\/h2>\n<p>While wealthy households will see significant benefits \u2014 especially from extended Trump-era tax cuts and new deductions for tip and overtime income \u2014 lower-income Americans face cuts to Medicaid, SNAP, and other safety net programs.<\/p>\n<p>\u201cWe\u2019ve done the distributional math,\u201d Sarin said. \u201cThe bottom 40% of earners are worse off after this bill. They\u2019re losing around $700 in after-tax, after-transfer income. Meanwhile, the top 1% gains $30,000 a year, and the top 0.1% gains even more.\u201d<\/p>\n<p>She described the bill as \u201creverse Robin Hood\u201d policy. \u201cWe\u2019re taking from those with the least and giving to those with the most.\u201d<\/p>\n<p>Republicans have touted benefits such as a tax cut for seniors. But Sarin said the cut amounts to only a modest increase in the standard deduction and is temporary. And the expanded child tax credit, increased from $2,000 to $2,200, does not benefit low-income families who don\u2019t earn enough to receive the benefit.<\/p>\n<h2 id=\"h-rural-hospitals\" class=\"wp-block-heading\">Rural Hospitals<\/h2>\n<p>Though many of the healthcare changes are backloaded to roll out after the 2026 midterm elections, their effects will be keenly felt in the coming years. In communities like Bakersfield, California \u2014 where over 60% of residents rely on Medicaid \u2014 local hospitals could be pushed to the brink and possibly shut down.<\/p>\n<p>\u201cWe\u2019re already seeing closures,\u201d Levitt said, citing a clinic in Nebraska that shut down citing this legislation. \u201cAnd while not every closure will be traceable to the bill, many will be.\u201d<\/p>\n<p>\u201cThis isn\u2019t just a bill. It\u2019s a redefinition of who gets to be protected in America and who gets left behind,\u201d said Sarin.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>BySunita Sohrabji Jul 17, 2025 \u201cThis&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,7],"tags":[],"class_list":["post-74190","post","type-post","status-publish","format-standard","hentry","category-opinion","category-u-s-a"],"_links":{"self":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/74190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=74190"}],"version-history":[{"count":1,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/74190\/revisions"}],"predecessor-version":[{"id":74191,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/74190\/revisions\/74191"}],"wp:attachment":[{"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=74190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=74190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=74190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}