Trump tax law could cause Medicare cuts if Congress doesn’t act, CBO says
August 15, 2025
The federal budget deficits caused by President Donald Trump’s tax and spending law could trigger automatic cuts to Medicare if Congress does not act, according to the nonpartisan Congressional Budget Office. The CBO estimates that Medicare, the federal health insurance program for Americans over age 65, could potentially see as much as $491 billion in cuts over the next ten years if Congress does not act to mitigate a 2010 law that forces across-the-board to many federal programs once legislation increases the federal deficit. The latest report from CBO showed how Trump’s signature tax and spending law could put new pressure on federal programs that are bedrocks of the American social safety net.