House GOP Budget Just Another Extreme Giveaway to the Rich

The House Republican budget released Wednesday by Budget Committee Chair Jodey Arrington is an extreme giveaway to the wealthy at the expense of families who already have a hard time making ends meet. It would raise families’ healthcare, food, and college costs; increase the nation’s economic risks; and worsen poverty and hardship for tens of millions of people, while doubling down on huge tax giveaways for wealthy households and businesses. This budget plan reflects a stark betrayal of U.S. President Donald Trump’s campaign promises to protect families who struggle financially.

The proposed budget’s reconciliation instructions—the directives to the tax-writing and other committees that set up a special fast-track process for passing budget and tax legislation—make the Republican agenda clear: costly tax cuts for the wealthy and businesses, paired with deeply harmful cuts in programs and services for families and communities. This is an upside-down plan that prioritizes the wealthy and well-connected over families for whom the cost of healthcare, college, and food is a serious concern. A reconciliation bill that meets the reconciliation directives to each committee would add trillions to the debt over the decade.

For weeks, House Republicans have been circulating proposals that would take health coverage and food assistance away from millions of people and raise the cost of student loans to offset part of the cost of extending the expiring 2017 tax cuts. Based on various proposals, 36 million people or more could be at risk of losing their health coverage through Medicaid, and more than 40 million people could receive less help from SNAP to buy groceries, millions of them potentially losing their food assistance altogether. About 5 million undergraduate students a year use federal student loans to pay for college, and many are at risk of higher costs to go to college given the cuts assigned to the Education and Workforce Committee. Millions of borrowers no longer in school could also be at risk for higher loan costs.

Extending the tax cuts for the top 1% costs $1.1 trillion through 2034, roughly the same amount they are proposing in cuts for millions who rely on Medicaid for health coverage and who use SNAP to buy groceries.

These aren’t just numbers. The loss of Medicaid means, for example, a parent can’t get cancer treatment, and a young adult can’t get insulin to control their diabetes. Cuts to food assistance mean a parent skips meals so their children can eat or an older person who lost their job has no way to buy groceries. These cuts will affect people in every state and of all races and ethnicities, but the impacts will often be especially severe in poorer states and among Black, Latino, and Indigenous people and people in rural communities, who have higher poverty rates and thus are more likely to qualify for food assistance and health coverage. Rather than expanding opportunity, the budget would make it harder for people to afford the healthcare and food they need to survive and succeed.

In addition to taking food assistance and health coverage away from people who need it, the budget plan could result in enormous cost shifts to state, local, territorial, and tribal governments, which are already facing tougher fiscal conditions than in recent years. And when they can’t meet those higher costs, the impacts on people and families will be severe.

All of this for what? To give tax cuts to high-income people for whom the cost of eggs or prescription drugs is at most an afterthought. The spending cuts required by the reconciliation instructions total $1.5 trillion, which is about the cost of extending the expiring tax cuts through 2034 just for those with incomes above roughly $400,000. Extending those tax cuts would give households with incomes in the top 1%, who make roughly $743,000 a year or more, a tax cut averaging $62,000 a year—significantly more than the total income of most households at risk of losing Medicaid or SNAP.

Even as Republicans promise to extend tax cuts skewed to the top, they are noticeably silent about extending one tax cut that is well targeted to people who need it: the improved premium tax credits that since 2021 have made Affordable Care Act marketplace health coverage far more affordable. Failure to extend this tax cut would raise premiums for more than 20 million people, including at least 3 million small business owners and self-employed workers, and render an estimated 4 million people uninsured.

Outside of the reconciliation instructions, the budget blueprint calls for significant additional, unspecified cuts, including cuts to the part of the budget that funds K-12 education, Pell Grants for college students, medical research, transportation and flight safety, clean air and water projects, and customer service at the Social Security Administration and the IRS.

The Numbers

The budget resolution directs the House Energy and Commerce Committee to reduce the deficit by $880 billion over 10 years, a target Republicans have indicated they will hit primarily by cutting Medicaid. Similarly, it directs the House Agriculture Committee to reduce the deficit by $230 billion over 10 years, which the committee would achieve primarily by cutting SNAP benefits, restricting eligibility, or both. And it directs the Education and Workforce Committee to reduce the deficit by $330 billion, the bulk of which is likely to come from making student loans more expensive.

These cut numbers are a “floor”; committees could cut even more as the legislative process advances. The budget resolution even includes a non-binding policy statement indicating a desire to make deeper cuts. (The directive to the House Ways and Means Committee may also assume cuts to energy tax credits, which would increase utility bills, imperil energy reliability, and threaten jobs and investment nationwide.)

This budget also cuts myriad investments in the budget area that covers everything from schools to roads, medical research, assistance with rents, and administering Social Security, known as non-defense discretionary (NDD) spending. In 2024, total NDD funding outside of veterans’ medical care was 14% below the 2010 level, after taking into account inflation and population growth, and it will likely fall further in 2025, when appropriations are finalized. The House Republican budget would continue this disinvestment in the future.

The House Republican budget’s path of less opportunity, higher poverty, and more inequality is the wrong direction for our nation.

As noted above, the budget plan could result in enormous cost shifts to state, local, territorial, and tribal governments. Some of the proposed cuts in Medicaid and SNAP would force them to pick up a much larger share of the programs’ costs or leave people without needed help. Cuts in funding for education, childcare, transportation, and other services would also leave states and localities to fill in the holes or see serious degradation in basic public services. If some states are better able than others to fill in those holes, the already large differences among states in areas such as education funding and quality will grow.

The budget would cut Medicaid, SNAP, and a broad set of public services and make college more costly, but not to reduce deficits or respond to a national emergency; instead to offset a portion of Republicans’ profligate tax agenda. The reconciliation instructions allow for the Ways and Means Committee to increase the deficit by $4.5 trillion through 2034. This is $900 billion more than is needed to extend the expiring 2017 tax provisions over that time period, signaling that more tax cuts will be added on top of the already expensive 2017 tax cuts and could include additional regressive corporate tax cuts. (Note that the reconciliation directives only go through 2034, so include nine years of new tax policy because the 2017 tax cuts are already in effect through 2025.)

Underscoring the House Republicans’ upside-down priorities: extending the tax cuts for the top 1% costs $1.1 trillion through 2034, roughly the same amount they are proposing in cuts for millions who rely on Medicaid for health coverage and who use SNAP to buy groceries. This is the same old trickle-down nonsense that has dramatically worsened inequality in income and wealth.

As large as the tax cuts are, the Budget Committee claims that the budget plan, if followed, would achieve deficit reduction by using unreasonable estimates of economic growth and its resulting impact on government revenues and spending. Their claimed macroeconomic “bonus” of $2.6 trillion over 10 years is far larger than independent estimates of macroeconomic effects of extending the tax cuts done by diverse entities like the Tax Foundation, Tax Policy Center, Yale Budget Lab, Joint Committee on Taxation, Congressional Budget Office, and Penn-Wharton Budget Model. While these were not estimates of this precise budget plan, it’s extremely unlikely that they would show a bonus anywhere near this size. And it should be noted that the Trump administration’s planned mass deportations (supported by the increased spending in the budget plan) as well as restrictions on new immigration and tariffs are all projected to reduce economic growth.

When you strip away the budget’s “bonus,” the budget would increase the debt by $1.6 trillion over the next decade—driven by expensive tax cuts—while increasing poverty, increasing the cost of a college education, raising families’ costs for food and healthcare, and leaving more people without health coverage. Coupled with the potential for tariffs to raise consumers’ prices for many goods, this agenda is a stark betrayal from the -resident’s promises during the campaign to look out for people who face financial struggles.

The House Republican budget’s path of less opportunity, higher poverty, and more inequality is the wrong direction for our nation. Unfortunately, Senate Republicans appear poised to head in a similar direction, only through two reconciliation bills rather than one. Congress should return to the drawing board and craft a budget that broadens opportunity, lowers costs, and invests in people and families, while responsibly raising the revenues needed to make those investments and reduce economic risks associated with high debt.