There are only days remaining in the House Republicans’ pledge to submit the coming year’s federal budget. While the larger components in play today are known, their fates and sizes are not.
Party work went on last weekend, including through the middle of the night on Sunday. Not a lot of light has bathed the coming GOP budget package, in contrast, for example, to months of public sessions and debate that shaped the Affordable Care Act known as Obamacare.
Expect there to be reductions in Medicaid, likely to the funding that a few years ago gave states the opportunity to extend Medicaid to cover somewhat higher income individuals. Health costs continue a steep upward climb, stressing both Medicare and Medicaid. Adding a work requirement may be ideologically satisfying for Republicans, but the majority of recipients are already working. And “non- workers” are taking care of family members in nonpaying positions, are unable to work due to a disability or are students.
Some states might have the resources to pick up a portion of the 90% of costs to extend Medicaid that the federal government is currently covering, but only a portion. Or, other states, none at all.
From the bits and pieces of what’s being reported, incentives for green energy development and use will remain, but only at a fraction of what’s there now, largely affecting states that overwhelmingly supported the president and will be most hurt. Funding for higher capacity battery development, key to using renewables, will be greatly reduced or eliminated. Gone will be tax incentives to purchase new and used electric vehicles, the party’s argument being that they only benefit those who don’t need it. And, the president’s mantra is that the country needs to run on fossil fuels, not renewables (the Chinese, heavily focused on the value of developing greatly improved, less expensive EVs, cannot believe their good fortune).
Donald Trump’s first term’s tax reduction is sure to be extended, including the reduced income tax percentages for those at the top of the brackets and for corporations. The $10,000 deduction for those who hadn’t itemized was and is helpful for lower and middle incomes, as is the increased child tax credit, but the benefits at the high end tipped the package to favor the wealthy. Returning to the higher percentages would provide some offsetting revenue for the otherwise in-the-red initiative that’s in process, but no elected Trump supporter would dare advocate for that. When will we begin to be honest and start talking about taxes – new or increased?
There will be more money for defense, and to secure the southern border – to continue building the wall – although immigrant numbers have declined steeply as a result of the president’s harsh rhetoric and blunt actions: If you’re in this country illegally, habeas corpus – knowing the charges against you – won’t apply and you risk being shipped to Libya, is his stance.
The president’s actions are negating the need for a completed wall, if that’s what his supporters believe is important. Use that expense savings in any number of ways.
What is reported about the “Big Beautiful Bill” is that it will add an estimated $4.6 trillion to the federal debt over 10 years. That, of course, has members of the House Freedom Caucus threatening a ‘no’ vote.
And what does it mean that the very likely Medicaid reductions will not go into effect until 2029, after the midterms and a couple of weeks after the president is no longer in office?
Reducing annual deficit spending and the national debt are critical issues. Current elected officials will say, ‘yes, but not fully now,’ after criticizing Democrats (and allowing fellow Republicans to ignore the challenge) for their inaction on those fronts for a couple of decades.
Federal budgeting is sausage-making times 10, but this effort is worse than most. And, it’s being done swiftly, with no light.
