{"id":3751,"date":"2025-08-12T12:53:32","date_gmt":"2025-08-12T17:53:32","guid":{"rendered":"https:\/\/westplexnews.com\/index.php\/2025\/08\/12\/cbo-says-republican-megalaw-helps-the-wealthy-and-middle-class-hurts-poorest-2\/"},"modified":"2025-08-12T12:53:32","modified_gmt":"2025-08-12T17:53:32","slug":"cbo-says-republican-megalaw-helps-the-wealthy-and-middle-class-hurts-poorest-2","status":"publish","type":"post","link":"https:\/\/westplexnews.com\/index.php\/2025\/08\/12\/cbo-says-republican-megalaw-helps-the-wealthy-and-middle-class-hurts-poorest-2\/","title":{"rendered":"CBO says Republican megalaw helps the wealthy and middle class, hurts poorest"},"content":{"rendered":"

\"A<\/p>\n

A sign in an Indianapolis store shown on Aug. 1, 2023, says SNAP benefits are accepted. A new analysis by the Congressional Budget Office projects 2.4 million fewer people per month will participate in the program under Republicans\u2019 tax cut and spending law (Getty Images)<\/p>\n

About 10 million people, mostly Medicaid recipients, will lose access to health insurance and 2.4 million fewer people per month will participate in a federal food aid program under Republicans\u2019 massive tax cut and spending law, the nonpartisan Congressional Budget Office said Monday.<\/p>\n

Median-income U.S. households will see a small overall gain in resources from President Donald Trump and the GOP\u2019s \u201cbig, beautiful\u201d law,\u00a0CBO said.<\/a><\/p>\n

But major changes to Medicaid and the Supplemental Nutrition Assistance Program, or SNAP, mean Americans at the bottom of the income distribution will see a net loss of benefits, CBO said.<\/p>\n

The law, which both chambers of Congress passed without any Democratic votes and Trump signed July 4, significantly narrows eligibility for Medicaid and SNAP.<\/p>\n

Those changes, even combined with federal tax cuts, will lead to a roughly 3% drop in resources over the next nine years for households in the bottom tenth of earners, the CBO analysis said.<\/p>\n

\u201cThe changes in resources will not be evenly distributed among households,\u201d the congressional scorekeeper said. \u201cThe agency estimates that, in general, resources will decrease for households toward the bottom of the income distribution, whereas resources will increase for households in the middle and toward the top of the income distribution.\u201d<\/p>\n

The projection shows households in the bottom two-tenths of the income distribution would see a net loss of resources.<\/p>\n

Households in the middle 20% of the income distribution would receive, on average, between $800 and $1,200 more per year, which would account for 0.8% to 1% of their income.<\/p>\n

At the top of the income distribution, households in the top tenth would see, on average, $13,600 more annually, about 2.7% of their projected income, from 2026 to 2034, the CBO said.<\/p>\n

But the lowest tenth of households by income would see a drop of about $1,200 per year, which accounts for 3% of that group\u2019s projected income, the CBO said.<\/p>\n

Millions to lose benefits<\/h4>\n

Roughly 10 million people will lose access to health insurance by 2034, the CBO projected. Most of that group, 7.5 million, would lose Medicaid benefits.<\/p>\n

A single section of the law creating new work requirements for Medicaid recipients would result in 5.6 million people losing access to care, the CBO said.<\/p>\n

The law also creates new work requirements for SNAP participants and mandates that at least some states pay for a portion of the benefits. States had never been required to cover any share of the cost of SNAP benefits.<\/p>\n

The changes to work requirements will result in reduced participation in the program by about 2.4 million people, the CBO said in\u00a0another analysis<\/a> published Monday.<\/p>\n

The changes to state cost-share in SNAP will save the federal government about $41 billion from 2026 to 2034, CBO said. The agency expects states to pick up most, $35 billion, of that spending.<\/p>\n

But the new requirements for states would still likely lead to 300,000 people fewer accessing benefits monthly. The report considered state officials would choose from policy responses including cutting benefits, reducing eligibility or leaving the program altogether in response to the new cost-share.<\/p>\n

\u2018Stealing from working families\u2019<\/h4>\n

In a press release, a quartet of Democratic leaders in Congress highlighted the regressive impact the CBO projected.<\/p>\n

\u201cPrices keep rising and American families are struggling,\u201d House Budget Committee ranking Democrat Brendan Boyle of Pennsylvania said. \u201cSo what are President Trump\u2019s Republicans doing to help? They passed a law that will make things worse by stealing from working families to give billionaires a tax break.\u201d<\/p>\n

\u201cIt is truly unfathomable that Trump and Republicans in Congress are championing a bill that gives the top 10 percent $13,600 more per year \u2013 while the least affluent 10 percent will lose $1,200 per year,\u201d Senate Budget ranking Democrat Jeff Merkley of Oregon said. \u201cThis is families lose, and billionaires win.\u201d<\/p>\n

Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, both of New York, made similar statements in the release.<\/p>","protected":false},"excerpt":{"rendered":"

A sign in an Indianapolis store shown on Aug. 1, 2023, says SNAP benefits are accepted. A new analysis by the Congressional Budget Office projects 2.4 million fewer people per month will participate in the program under Republicans\u2019 tax cut and spending law (Getty Images) About 10 million people, mostly Medicaid recipients, will lose access…<\/p>\n","protected":false},"author":2,"featured_media":3752,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3751","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"\nCBO says Republican megalaw helps the wealthy and middle class, hurts poorest - WestplexNews.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/westplexnews.com\/index.php\/2025\/08\/12\/cbo-says-republican-megalaw-helps-the-wealthy-and-middle-class-hurts-poorest-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CBO says Republican megalaw helps the wealthy and middle class, hurts poorest - WestplexNews.com\" \/>\n<meta property=\"og:description\" content=\"A sign in an Indianapolis store shown on Aug. 1, 2023, says SNAP benefits are accepted. 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