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CBO CONFIRMS TRUMP BUDGET LAW WILL TRIGGER OVER $500 BILLION IN
AUTOMATIC MEDICARE CUTS  
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Brad Reed
August 15, 2025
Common Dreams
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_ "Republicans knew their tax breaks for billionaires would force
over half a trillion dollars in Medicare cuts—and they did it
anyway," said Rep. Brendan Boyle. _

Members of the Professional Staff Congress, the union representing
30,000 faculty and staff of the City University of New York,
protesting to protect Medicare. , Photo: Scott Heins

 

A report released on Friday confirmed what many Democratic lawmakers
have long been warning
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Republicans' massive budget law will trigger significant cuts to
Medicare.

The Congressional Budget Office (CBO) released its analysis of the
GOP's budget package and acknowledged that it would be required to
issue a sequestration, which is essentially a cancellation of
budgetary resources.

The sequestration is required under the rules set out by the Statutory
Pay‑As‑You‑Go Act of 2010 that requires spending cuts that are
equal to a piece of legislation's negative impact on the budget
deficit.

The only way to avoid these cuts, said the CBO, would be for Congress
to pass "subsequent legislation that would offset the deficit
increase, waive the recordation of the bill's effects on the
scorecard, or otherwise mitigate or eliminate the statutory
requirements."

The CBO said that these cuts could take as much as $45 billion out of
Medicare for fiscal year 2026. What's more, the amount cut from
Medicare would increase in every subsequent year, resulting in total
cuts of as much as $536 billion between 2026 and 2034.

Rep. Brendan Boyle (D-Penn.), the ranking member of the House Budget
Committee, excoriated his Republican colleagues for passing a budget
that will result in cuts to Medicare, a program that US
President Donald Trump
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not to touch during the 2024 presidential campaign.

"For months now, I have been sounding the alarm on the devastating
Medicare cuts caused by Trump's Big Ugly Law," he said. "Republicans
knew their tax breaks for billionaires would force over half a
trillion dollars in Medicare cuts—and they did it anyway. American
families simply cannot afford Donald Trump's attacks on Medicare,
Medicaid, and Obamacare."

The Republicans' budget package also took a major ax to Medicaid, as
it cut spending on the program by an estimated $1 trillion over the
next decade. The CBO has already projected that millions of people
will lose coverage.

Medicaid cuts are already having a negative impact. Several states
have said
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are slashing rates paid to medical providers, which experts have said
could result in several hospitals in these states going bankrupt given
that many of them were in bad financial shape even before the GOP's
budget law passed last month.

* Big Beautiful Bill
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* Attack on Medicare
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* Congressional Budget Office
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