Republicans Are Cutting Medicare. Not Only Medicaid, Medicare. [View all]

Passage of the Big Beautiful Bill will force mandatory sequestration that will mean half a trillion dollars in Medicare cuts.

by David Dayen July 3, 2025


It’s always appropriate to bet on the House Freedom Caucus caving to their leader Donald Trump. That’s what happened at 3:20 a.m. this morning, when various assurances, including a potential second reconciliation bill for the 2026 fiscal year, flipped all of them to yes on the Republican mega-bill, which takes food and medicine away from the most vulnerable people in America to give the wealthiest a tax cut.



But now Republicans have created another problem. They didn’t just cut Medicaid; they also have forced nearly half a trillion dollars in cuts to Medicare, the health program for the elderly.

Because of a statutory requirement to automatically impose budget cuts when legislation increases the deficit, the Big Beautiful Bill would require automatic sequestration cuts across the board, something that has been confirmed by the Congressional Budget Office (CBO) but has been largely absent from the debate over the bill. Medicare is one of the programs that will face the axe, and the damage sums to $490 billion over the next ten years, starting in the next fiscal year that begins in October. While many of the safety-net cuts in the bill are delayed to help Republicans with their re-election campaigns, the Medicare cuts must begin next year.
https://prospect.org/politics/2025-07-03-republicans-cutting-medicare-not-only-medicaid/