Millions could lose health insurance under Trump’s new budget plan

WASHINGTON: An all-encompassing budget proposal pushed by Republicans in the U.S. Senate is facing severe disapproval after new evaluations disclosed that it could leave approximately 12 million Americans with no health insurance and add a staggering US$3.3 trillion (S$4.45 trillion) to the national debt. According to the latest Reuters report, the bill, dubbed the “One Big Beautiful Bill” and supported by President Donald Trump, barely advanced in a 51-49 vote on Saturday night, escalating political pressures on Capitol Hill.

Healthcare at the heart of the storm

One of the most contentious sections of the bill is its projected US$1 trillion in cuts to healthcare subsidies, particularly Medicaid, a lifeline for low-income, ageing, and incapacitated Americans. The Congressional Budget Office (CBO), a non-partisan federal agency, cautioned that the cuts could considerably diminish coverage and pressure healthcare systems, predominantly in the countryside.

Democrats condemned Republicans for making tax breaks for the affluent at the expense of helpless communities. “This is tax cuts for the wealthiest to end up cutting healthcare, plain and simple,” said Senator Mark Warner of Virginia. The bill also introduces new work requirements for Medicaid beneficiaries and limits the taxes that states can impose on medical providers, which are major income sources used to fund state Medicaid programs.

Political divides deepen in the Senate

The bill’s passage is far from certain. With only a lean 53-seat majority, Senate Republicans can afford only three breakaways. Already, two GOP legislators — Senators Thom Tillis of North Carolina and Rand Paul of Kentucky — have opposed the bill. Tillis, who said the bill would cost his state billions in healthcare backing, has since declared he will not seek re-election.

Vice-President JD Vance holds the tie-breaking vote if required, but Democrats are using every existing technical means to delay a concluding vote. Over the weekend, they appealed Senate rules to compel a 16-hour reading of the virtually 1,000-page bill. Deliberation is expected to continue for no less than another 20 hours, during which alterations can still be suggested.

Tax cuts and tougher welfare rules fuel debate

At the heart of the bill are the tax cuts advocated by President Trump. These include deductions on Social Security paybacks and the removal of taxes on overtime pay and tips. The bill also expands the 2017 Republican tax cuts. According to the non-partisan Tax Policy Centre, over 80% of Americans would receive a tax cut next year, with more affluent people making the biggest gains.

President Trump has set a Jul 4 target for the bill to pass Congress, calling the Senate’s initial vote a “great victory,” but with disagreement growing and essential votes hanging in the balance, the route to its ultimate approval is anything but sure-fire.