The House of Representatives just provided final approval to Donald Trump’s economic misadventure in mega tax cuts and ramped up spending. That would be an extraordinary moment for conservative policies to take root in the United States. The bills promise to make sweeping progressive changes to social policy. It intends to scrap the green energy subsidies that were installed during Joe Biden’s presidency. The country is bracing for staggering economic displacement and social consequences. With the bill moving swiftly towards becoming law, we’re preparing for just that.
Yet the bill’s provisions would overwhelmingly reshape safety net programs, especially Medicaid and Supplemental Nutrition Assistance Program (SNAP). Republicans have insisted on tougher work requirements be included in these bipartisan programs, all of which will hurt millions of Americans that depend on them. Second, for the first time, states need to be responsible for at least some of the costs of their decisions in SNAP. This requirement increases the financial burden on local governments.
Economists are already sounding the alarm over the damage these changes would wreak. Robert Manduca forecasts that the benefit cuts associated with the bill may result in a staggering $120 billion per year decline in local economies. This cut will undoubtedly send shockwaves through communities as families lose vital assistance.
Maya MacGuineas, the president of the nonpartisan Committee for a Responsible Federal Budget, sounded the alarm on the nation’s expanding budget deficit. She says that this legislation would put its long-term sustainability in jeopardy.
“Yes, the economy may well enjoy a sugar-high the next couple of years, as borrowing stimulates near-term consumption,” – Maya MacGuineas.
She blew the whistle on the long-term consequences of these fiscal maneuvers.
“But a sugar-high won’t be sustained, it will do real damage, and often what comes next is the crash. The longer-term health of our economy, American families, and our children will be worse off due to this debt-financed bill.” – Maya MacGuineas.
Sadly, the bill includes record amounts of money for immigration enforcement. It focuses tens of billions on finishing a wall along the Mexican border. Proponents contend that these types of drilling are fundamental to national security and economic stability. Opponents argue that pushing these issues undermines focusing on addressing poverty and fulfilling health care requirements.
In total, approximately 34% of the population will experience negative impacts from this bill, primarily due to cuts in SNAP and Medicaid benefits. The harm this legislation will cause through these cuts to assistance will be felt by hundreds of millions. Millions would go on to lose these indispensable lifelines, throwing them into even greater jeopardy.
Lelaine Bigelow advocates for social safety net programs. She underscored that the bill’s sweeping effect and the enormous promise it carries for communities across the country.
“Sometimes people like to feel like this is an us versus them [issue], but this is really all of us. It is the people that your kids are going to school with it, is your neighbor, the people that you play soccer with,” – Lelaine Bigelow.
Tax cuts in the bill will provide immediate relief to the middle-class families and high-tax municipalities. These benefits will sunset by 2028. The temporary nature of such benefits has been called into question, particularly with regard to their ability to generate long-term economic development.
“This is going to have a massive effect on a lot of people around this country.” – Lelaine Bigelow.
While tax cuts included in the bill may provide some immediate relief to certain groups, they are set to expire by 2028. The short-lived nature of these benefits raises questions about their effectiveness in fostering sustainable economic growth.