Trump’s Budget Bill Will Hurt America’s Poorest The Most
Despite campaign pledges to champion working-class Americans, President Donald Trump is now backing a Republican budget bill that economic analysts say would deliver sweeping financial harm to low- and middle-income households, while handing substantial benefits to the wealthy. The bill, which proposes over $1.4 trillion in cuts to Medicaid, the Affordable Care Act (ACA), and food assistance programs, has drawn widespread criticism for disproportionately targeting Americans earning under $50,000 a year — a demographic that helped secure Trump’s 2024 election win.
Deep Cuts for the Working Poor, Windfalls for the Wealthy
According to the recent data from the Congressional Budget Office (CBO), the lowest-earning 10% of households would face an average income loss of $1,600 per year — nearly 4% of their income — while top-tier households earning over $692,000 would see a net gain of $12,000 annually. For the top 0.1% of earners, tax cuts would average over $100,000 per year. In contrast, the bottom 20% of households would receive just 1% of all tax relief included in the new budget bill.
Trump has insisted the cuts are aimed at eliminating “fraud, waste, and abuse,” but policy experts point out that only 3.5% of the proposed healthcare cuts address those issues. Critics argue that the bill’s structure reverses long-standing principles of equitable taxation and support, with deep spending cuts paired with tax benefits heavily skewed toward the highest earners.
Key Programs Slashed, Budget Bill Risks
Beyond health and food aid, the bill targets other essential programs. Pell Grants could be reduced for 4.4 million students, and the Low-Income Home Energy Assistance Program, which aids 6 million Americans, faces elimination. The Center for Budget and Policy Priorities warns that these cuts could increase hardship for millions already living on the edge. Jeanne Lambrew of the Century Foundation estimates that 16 million Americans would lose healthcare coverage under the bill, which would push the national uninsured rate to levels not seen in decades.
The bill is also deeply unpopular among voters. A Fox News poll shows only 38% support the legislation, while 59% oppose it. Public resistance is even higher in a Quinnipiac University poll, which found only 27% approval.
Symbolic Provisions Offer Little Relief to Most
Meanwhile, Trump has pointed to provisions like “no tax on tips” and “no tax on overtime” as victories for the working class. However, experts say those benefits are negligible for most low-income earners. Less than 4% of workers in the bottom half of the income distribution are in tipped jobs, and many already earn too little to owe federal income tax. The average benefit from the overtime exemption for low-income Americans is estimated at under $10 per year.
The budget also poses a broader economic threat. The CBO projects a $3.3 trillion increase in federal debt if the bill passes, a shift expected to raise interest rates and increase costs for homebuyers and borrowers. Simultaneously, Trump’s tariff policies are projected to hit lower-income households hardest, with the poorest 20% potentially spending up to 5.5% of their income on tariff-driven price hikes.
Religious leaders and think tanks alike have condemned the bill. Archbishop Timothy Broglio, president of the U.S. Conference of Catholic Bishops, warned that the budget fails to promote the common good, echoing widespread sentiment that the policy direction contradicts core promises made during Trump’s campaign.
Ultimately, the proposed legislation represents a significant redistribution of resources upward — a dramatic policy shift that many view as punitive toward the very Americans who propelled Trump back to the White House.
