REPUBLICAN BUDGET HARMS SENIORS (AMONG MANY OTHERS)

The recently enacted Republican budget bill will harm seniors by reducing Medicaid spending, weakening Social Security, and cutting Medicare. These (and other) budget cuts are being made to help pay for large tax cuts for wealthy individuals and corporations.

(Note: If you find a post too long to read, please just skim the bolded portions. Thanks for reading my blog!)

The Republican budget just passed by Congress and signed by President Trump will harm seniors by reducing Medicaid spending, cutting Medicare, and weakening Social Security. Before I get into some of these details, a couple of notes on other provisions of the bill, of which there are many in the nearly 1,000-page bill’s language. As you probably know, 12 million people are projected to lose their health care due to Medicaid cuts of roughly $1 trillion (yes, trillion) over the next ten years. Medicaid provides health insurance for low-income families and seniors including long-term care for millions of seniors (see more below). Cuts to food assistance programs, primarily the Supplemental Nutrition Assistance Program (SNAP), will increase hunger for millions of families, including many new mothers and babies where malnutrition may have long-term effects on the babies’ development.

All the cuts in the budget are being made to help pay for large tax cuts for wealthy individuals and corporations. Note that the big tax cuts take effect right away, while many of the program cuts don’t go into effect until after the 2026 election. The Republicans hope that because people won’t be experiencing the program cuts before the election that it will be easier to con voters into voting for Republicans.

Most people know that the budget will increase the federal budget’s annual deficits by over $300 billion for a total of $3 trillion (yes, trillion) over the next ten years. However, few people are aware that the bill increases the federal government’s overall amount of allowable, accumulated debt, i.e., the debt ceiling, by $5 trillion. (I’ll document the Republicans’ hypocrisy on raising the debt ceiling in a future post.)

The Trump administration and Republicans are pumping out lots of disinformation about the budget bill in an attempt to keep the public from understanding the harm it will do.

For example, within hours of the passage of the bill, all of you who are seniors, tens of millions of Americans overall, received an email from the Social Security Administration stating that “The bill ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits” and that “The new law includes a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries.” [1]

These statements are misleading at best. Only about a quarter (25%) of seniors will see any tax benefit from the bill’s provisions – quite different from the figures used in the Social Security Administration’s email. The bill does not directly eliminate or even reduce taxes on Social Security benefits. What the bill does is temporarily increase the standard income tax deduction by $6,000 for seniors 65 and over. [2] Sixty-four percent of seniors receiving Social Security benefits ALREADY pay no tax on their Social Security payments. This percentage will increase to 88% due to the bill’s provisions. Furthermore, the people who will benefit will be those Social Security recipients who are better off and the richest will benefit the most. By the way, the increase in the income tax deduction will expire in 2028 when Trump’s term in office is ending. [3] [4]

Furthermore, the message from the Social Security Administration didn’t mention that, overall, the budget bill will weaken Social Security by reducing the revenue that flows into the Social Security system. Currently, the Social Security trust fund, built up over many years to help pay Social Security benefits, is projected to run out of money in 2033. After that, Social Security revenue would only be able to pay 77% of promised benefits. Under the Republican budget bill, the Social Security trust fund will run out of money one year earlier, in 2032, and its reduction of future Social Security revenue means that benefits after 2032 would be even lower than the currently projected 77% of the promised level. [5]

The Republican budget’s cuts to Medicaid will harm low-income seniors who qualify for Medicaid (and that they receive in addition to Medicare – which covers all seniors). In particular, it will harm the roughly eight million seniors and people with disabilities whose long-term home and community-based care services are paid for by Medicaid and the 1.5 million seniors in nursing homes. About two-thirds of all nursing home residents are covered by Medicaid. The budget’s Medicaid cuts will significantly reduce revenue for long-term care services and facilities. As a result, 25% of nursing homes are projected to close and over half are likely to have to reduce staff to remain financially viable. Therefore, finding nursing home care, let alone good quality care, will become even more difficult than it is now. [6] [7]

In addition to the direct cuts to Medicaid (government health care coverage for low-income families and seniors), the Republican budget will also force cuts to Medicare (government health care coverage for all seniors). Because of the budget’s large increases in the federal government’s annual budget deficits, the Pay-As-You-Go (PAYGO) Act of 2010 requires across-the-board budget cuts. A mandatory cut of about $50 billion a year to Medicare for each of the next ten years will be required. This cut will take place immediately (while many of the explicit program cuts in the budget are delayed until after the 2026 elections). [8]

Please contact your members of Congress and tell them you are opposed to (or even horrified by) budget cuts that will harm seniors. Tell them you are particularly upset that these cuts are being used to give wealthy individuals and corporations tax cuts. Urge them to speak out against these cuts and to explain to their constituents the toll the Republican budget is taking on seniors and others.

You can find contact information for your US Representative at  http://www.house.gov/representatives/find/ and for your US Senators at http://www.senate.gov/general/contact_information/senators_cfm.cfm.

[1]      Social Security Administration, 7/3/25, “Social Security applauds passage of legislation providing historic tax relief for seniors,” Press Release (https://www.ssa.gov/news/press/releases/2025/?utm_source=substack&utm_medium=email#2025-07-03)

[2]      Hubbell, R., 7/7/25, “Stay on task: Overwhelm the opposition,” Today’s Edition Newsletter (https://roberthubbell.substack.com/p/stay-on-task-overwhelm-the-opposition)

[3]      Edelman, L., 7/15/25, “Seniors score, gamblers get rolled in Trump’s ‘big beautiful bill’,” The Boston Globe

[4]      Siegel Bernard, T., 7/8/25, “Social Security email misleading,” The Boston Globe from the New York Times

[5]      Johnson, J., 7/4/25, “Trump Social Security chief applauds budget bill that will harm Social Security’s finances,” Common Dreams (https://www.commondreams.org/news/trump-social-security-budget-bill)

[6]      Lawson, A., 6/30/25, “The Republican nursing home apocalypse,” Common Dreams (https://www.commondreams.org/opinion/gop-nursing-homes)

[7]      National Association of Councils on Developmental Disabilities, Feb. 2025, “Medicaid facts with links to state data,” (https://nacdd.org/wp-content/uploads/2025/02/250204_NACDD-Medicaid-Fact-Sheet.pdf)

[8]      Dayen, D., 7/3/25, “Republicans are cutting Medicare. Not only Medicaid, Medicare.” The American Prospect (https://prospect.org/politics/2025-07-03-republicans-cutting-medicare-not-only-medicaid/)