Key facts
- Congress passed President Trump's tax and spending bill on July 3.
- The legislation includes approximately $1 trillion in cuts to Medicaid.
- Democrats have labeled the bill "cruel" and "dangerous," citing its impact on healthcare.
- President Trump is promoting the bill as a catalyst for economic growth.
- Public polling shows more opposition than support for the bill.
- Republicans acknowledge that the Medicaid cuts could be a political liability in the 2026 midterms.
Congress has passed President Trump's significant tax and spending bill, which includes substantial cuts to Medicaid, ahead of the 2026 midterm elections. The legislation, passed on July 3, aims to extend tax reductions while offsetting costs with nearly $1 trillion in cuts to the healthcare program.
Democrats have strongly opposed the bill, with House Minority Leader Hakeem Jeffries describing it as "cruel" and "dangerous," and the largest cut to healthcare in American history. They plan to leverage these cuts as a central campaign message against Republicans in the upcoming midterms, drawing parallels to the backlash following the 2017 Affordable Care Act repeal attempt.
President Trump, however, is championing the bill as a driver of economic growth, using slogans like "THE ONE BIG BEAUTIFUL DEAL IS ALL ABOUT GROWTH." He held an event in Iowa to promote the legislation and signaled his intent to use it as a campaign issue, expressing disdain for Democrats who did not vote for it.
Public opinion appears to be against the bill, with polls showing more opposition than support. While some specific provisions, such as Medicaid work requirements, garner more public favor, the overall impact of Medicaid cuts is a significant concern. Republicans acknowledge the political challenge, with some members, like Representative Don Bacon, expressing difficulty in defending the bill's provisions, particularly the Medicaid cuts, despite potential tax benefits for constituents.