Trump’s tax law by the numbers: $1 trillion less for Medicaid, $75 billion more for ICE

July 8, 2025

President Trump and Republicans' new tax-and-spending law extends tax breaks primarily benefiting corporations and wealthy Americans while significantly cutting funding for programs serving lower-income populations. The legislation faces potential legal challenges, with a federal judge already temporarily blocking a provision preventing Planned Parenthood clinics from accessing Medicaid funding. The law will substantially impact women, children, and LGBTQ+ Americans through extensive cuts to Medicaid, CHIP, and SNAP benefits, while simultaneously allocating billions for immigration enforcement including border wall construction and detention centers.

Who is affected

Lower-income Americans who rely on Medicaid, CHIP, and SNAP benefits
Women, children, and LGBTQ+ Americans who disproportionately depend on affected programs
800,000 children and more than 500,000 older or disabled adults at risk of losing SNAP benefits
Millions of Americans expected to lose healthcare coverage due to Medicaid cuts
Rural communities facing potential hospital closures
Immigrants who will face increased enforcement and detention

What action is being taken

A federal judge in Boston is temporarily blocking the provision preventing Planned Parenthood clinics from accessing Medicaid funding
The government is cutting spending from Medicaid, CHIP, and SNAP over the next decade
The law is implementing new work requirements for SNAP participants
The government is increasing the child tax credit to $3,000 and creating "Trump accounts" for children under 8
Billions are being allocated for border wall construction, immigration detention centers, and deportation operations

Why it matters

The law significantly redistributes government resources, with tax benefits primarily flowing to wealthier Americans while cutting services for lower-income populations
Essential health services for millions of vulnerable Americans are being reduced
Rural communities may lose access to healthcare as hospitals face closure
Immigration enforcement will intensify dramatically with substantial new funding
The federal deficit is projected to increase by at least $4 trillion over the next decade
The legislation particularly impacts women, children, and LGBTQ+ Americans who rely heavily on the affected programs

What's next

No explicit next steps stated in the article

Read full article from source: The 19th