Trump's Bill Faces Backlash Over Medicaid Cuts, Debt Concerns

President Donald Trump’s “Big, Beautiful Bill” has entered a critical phase in the Senate, with the legislation promising significant changes to taxes, federal spending, and regulatory policies. The bill aims to permanently extend Trump’s 2017 tax cuts, introduce new tax breaks, and inject billions into border security and military spending. However, it also proposes steep cuts to social programs like Medicaid and food stamps, which could balloon the national debt by an estimated $3.3 trillion over the next decade.

The bill has sparked intense debate within the Republican Party, with prominent senators like Thom Tillis and Rand Paul voicing sharp criticism. Tillis argued that the deep cuts to Medicaid break Trump’s promises to protect health coverage and would devastate constituents. If the bill passes, an estimated 11.8 million more Americans would become uninsured by 2034. Moderate GOP lawmakers, such as Sen. Susan Collins and Rep. David Valadao, have also expressed concerns about the Medicaid cuts.

Fiscal hawks like Paul are concerned about the bill’s price tag and its impact on the debt ceiling. The Senate’s budget blueprint includes a provision that would raise the debt ceiling by $5 trillion. Paul argued that this admission indicates a lack of control over the deficit and that the ensuing years will add trillions more to the debt.

Beyond Capitol Hill, the bill is drawing rebukes from influential figures in the business and cultural worlds. Elon Musk has been particularly vocal, calling the bill “political suicide” for the Republican Party. Musk claimed the legislation was “utterly insane and destructive,” warning that the bill’s regulatory changes and spending cuts could kill jobs in future-focused industries and stifle innovation.

Musk’s criticism focused on provisions in the bill that would eliminate Biden-era tax credits for renewable energy, such as solar, wind, and battery manufacturing. These provisions are also a point of concern for Sen. Lisa Murkowski. Musk’s opposition to the bill’s energy provisions highlights certain key weaknesses in the legislation, according to Doug Elmendorf, professor of public policy at Harvard’s Kennedy School of Government. Elmendorf noted that the provisions could raise electricity prices for many Americans.

Leaders in the artificial-intelligence sector, including Anthropic CEO Dario Amodei, have condemned provisions in the bill that would preempt state-level AI regulations for a decade. Amodei argued that without a clear plan for a federal response, a moratorium would give the worst of both worlds—no ability for states to act, and no national policy as a backstop. The AI moratorium has also sparked discontent from Republicans who argue the provision encroaches on the GOP’s historical support for states’ rights.

Despite the internal and external discord, Senate Majority Leader John Thune is pushing to finalize the bill before the July 4 holiday. Should it pass the Senate, the legislation would return to the House for final reconciliation. The White House is confident that the Republican conference will get behind the bill. For Trump, the stakes are high, as he seeks to cement his policy legacy and energize his base ahead of midterm elections.