Senate Passes Trump’s Sweeping Tax and Spending Bill, Poorest Americans Expected to Bear the Brunt
In a narrow 51-50 vote, Senate Republicans pushed through a major tax and spending package championed by former President Donald Trump, advancing a bill that analysts warn will disproportionately hurt the poorest Americans while enriching the wealthiest.
The legislation, dubbed the “One Big Beautiful Bill,” extends many of Trump’s 2017 tax cuts permanently and ramps up funding for border security and fossil fuel production. However, it finances these measures largely by cutting essential social safety net programs, including Medicaid and food assistance, which millions of low-income families rely on.
Experts from Yale’s Budget Lab found that individuals in the lowest income bracket could see their after-tax income decline by an average of 2.3% over the next decade, amounting to losses of around $560 annually by 2034 for those with minimal or no income. In stark contrast, the wealthiest Americans—those earning over $3 million—are projected to gain over $118,000 on average during the same period. Martha Gimbel, co-founder of the Budget Lab, described the bill as “highly regressive,” marking one of the largest rollbacks of the federal safety net in a generation.
The bill also imposes stricter work requirements for Medicaid and the Supplemental Nutrition Assistance Program (SNAP), potentially disenfranchising millions, including adults with children over the age of 14. States may face increased costs for administering these programs, with some, like Colorado, estimating up to $200 million in additional expenses annually. Nearly 12 million Americans are projected to lose health insurance coverage due to these Medicaid changes.
Senate Democrats, led by Chuck Schumer, condemned the bill for being rushed through “in the dead of night” without adequate public scrutiny. They warned that the legislation would add more than $3 trillion to the national debt by 2034, burdening future generations with higher costs for housing, credit, and everyday living expenses. The bill also reverses many clean energy tax incentives established under President Biden, threatening thousands of jobs in renewable energy sectors and raising concerns about increased energy costs nationwide.
The bill now proceeds to the House of Representatives, where it faces internal Republican opposition, particularly over the Medicaid cuts. If passed, the legislation will represent a significant shift in federal policy, favoring wealthier Americans while undermining support for vulnerable populations.
Colorado Senator Michael Bennet criticized the bill, stating, “This is a bill that’s going to make the wealthiest people in America wealthier and the poorest people in America poorer, which is, I think, exactly the opposite of what we should be doing right now.”
As the debate continues, millions of Americans face uncertainty about their access to healthcare, food assistance, and economic stability under the new law.
This draft summarizes the key points of the bill’s passage, its projected impacts on different income groups, and the political reactions surrounding it.