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Amy Goodman

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“Theft from On High”: Trump’s Budget Bill Guts Medicaid, Medicare & More to Pay for Tax Cuts

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Trump’s sweeping budget legislation has been described as the biggest Medicaid cut in U.S. history. House Republicans passed the bill early Thursday morning in a 215-214 vote. The legislation would trigger massive cuts to Medicare and Medicaid over the next 10 years, denying coverage to an estimated 7.6 million Americans, according to the Congressional Budget Office. Food assistance under the federal SNAP program would also see $300 billion in cuts, while adding billions in funding for Trump’s mass deportation agenda and giving the wealthiest Americans a tax break.

“The legislation is basically a mugging conducted by the 1% against the rest of us. It represents the single largest upward redistribution of wealth effectuated by any piece of legislation in our history,” says Chris Lehmann, D.C. bureau chief for The Nation.

Senate Republicans, who have voiced some concerns over the bill, will now have to pass their own version of the budget. With all Democratic senators opposed to the package, Republicans are working to use the reconciliation process to avoid a filibuster.

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Transcript
This is a rush transcript. Copy may not be in its final form.

AMY GOODMAN: We begin today’s show looking at Trump’s sweeping budget bill that includes what’s been described as the biggest Medicaid cuts in U.S. history. On early Thursday morning, House Republicans passed the bill, giving massive tax breaks to the rich while slashing spending for Medicaid, Medicare, food assistance and subsidies for clean energy. The measure just eked through with a 215-to-214 vote that came after an all-night session and days of negotiations.

Food assistance under the federal SNAP program would also see $300 billion in cuts, while adding billions in funding for Trump’s border enforcement and mass deportation agenda.

House Speaker Mike Johnson praised the budget package, speaking after the vote.

SPEAKER MIKE JOHNSON: We look forward to the Senate’s timely consideration of this once-in-a-generation legislation. We stand ready to continue our work together to deliver on the One, Big, Beautiful Bill, as President Trump named it himself.

AMY GOODMAN: Ahead of the House vote, Democratic Congressmember Greg Casar of Texas confronted Republicans on the House Budget Committee on rising healthcare premiums for their constituents while giving billionaires more tax breaks.

REP. GREG CASAR: In this bill, they’re going to jack up the premiums on healthcare for the people that rely on the marketplace for their healthcare. And so, I will hand the mic over, yield my time to any of my Republican colleagues that want to address the amount of money that their tax-paying citizens are going to have to pay in increased premiums for their healthcare. … And what bothers me the most is that we want to hide it. Nobody wants here to talk about the fact that they are jacking up insurance costs on their own constituents while giving a billionaire a tax break. Nobody on the Republican side pushing this bill wants to have an in-person town hall and look their constituents in the face and explain to them why they want to hand Elon Musk another $25 billion contract while jacking up your health insurance costs, not just by hundreds, but by thousands of dollars.

AMY GOODMAN: Again, they’re the largest Medicaid cuts in U.S. history. The legislation would trigger $625 billion in Medicare cuts over the next 10 years.

Some Senate Republicans have voiced some concerns over the measure and will now have to pass their own version of the budget. With all Democratic senators opposed to the package, Republicans could resort to using the reconciliation process to avoid a filibuster.

For more, we go to Washington, D.C. We’re joined by Chris Lehmann, D.C. bureau chief for The Nation. His latest piece is headlined “Trump and Johnson’s Big Ugly Lie.”

Chris Lehmann, welcome back to Democracy Now! Lay out what’s in the legislation.

CHRIS LEHMANN: Thanks, Amy. Always a pleasure.

Yeah, I would say the legislation is basically a mugging conducted by the 1% against the rest of us. It represents the single largest upward redistribution of wealth effectuated by any piece of legislation in our history. The tax cuts work out to about $4 trillion, and the chief beneficiaries are at the upper end of the income spectrum. People earning $4 million or more, the 0.1%, will realize $389,000 gains in their after-tax income, whereas the lowest quintile of earners, who make $17,000 or less, will be on the hook for $1,000 and some change in their after-tax income, and that number will rise over the 10-year course of this package.

And the GOP has dishonestly peddled it as a, you know, necessary — the cuts in the legislation as necessary fiscal discipline. In point of fact, this package will increase the federal deficit by $3 trillion. And you saw instantly the bond markets swooned on the news that this legislation has passed. The futures markets today are sort of in freefall.

So, it is just an outlandish piece of legislation, you know, based on basic economic principles, and it is a massive giveaway to the wealthy. You mentioned, you know, the historic cuts to Medicaid, to SNAP, to food assistance. There’s also just, you know, crass and corrupt lobbying giveaways. There’s a provision in it that prohibits all states from regulating artificial intelligence. It’s a staggering work of theft from on high.

AMY GOODMAN: And explain the “on high.” Explain what the billionaires get in exchange for cutting Medicaid, triggering the Medicare cuts, cutting clean energy, cutting food assistance.

CHRIS LEHMANN: They get $2.5 trillion in tax cuts. And that is — that’s been the social contract, you know, behind the MAGA takeover of the GOP all this time. You know, the billionaires are more than happy to have Trump foment racial hatreds, you know, panic about the border, about DEI, what have you, go after universities, as we’re now seeing, all in exchange for this, for yet more obscene wealth. That, you know, as is crafted in this bill, is directly taking critically needed support and, you know, assistance from the middle class and the working class.

AMY GOODMAN: I want to ask you about the position of the Democratic Party in this. The party has faced widespread criticism, accused of failing to properly challenge Trump’s agenda. There’s a new piece — 

CHRIS LEHMANN: Yeah.

AMY GOODMAN: — by The New — in The New Republic that says, quote, “House Republicans managed to pass their draconian budget bill, which promises to make massive cuts to Medicaid, Medicare, and food assistance, early Thursday morning by a narrow one-vote margin that was only possible due the deaths of three Democrats in this current Congress.” It goes on to talk about, on Wednesday, Representative Gerry Connolly of [Virginia] passed away after battling esophageal cancer. He’s the third Democrat to die in office this year and the sixth in just over a year. In March, longtime Arizona Congressmember Raúl Grijalva passed away also after battling cancer, and Congressmember Sylvester Turner of Houston, Texas, died six days earlier. Can you talk about all of this?

CHRIS LEHMANN: Yes, this is, you know, an ongoing problem. And obviously, this is all in the shadow of new revelations about how the Biden White House basically concealed the actual cognitive decline of the president. You know, there is a huge gerontocracy problem in the Democratic Party, and where, you know, it is not an exaggeration, as the piece you quoted says, that if we did not lose these three House members, this disastrous bill might have been stopped.

And it’s also — you know, beyond the demographics, there is also just a basic failure of standing up for principle. You know, there was an earlier budget showdown that could have produced a government shutdown, and Democrats had leverage at that point to get concessions from Republicans in exchange for letting the budget go forward, and Chuck Schumer just folded like a cheap suit in the Senate and gave the Republicans everything they demanded. That’s the sort of longer-term background to this disastrous bill that passed yesterday. The Republicans know they can count on Democrats either to, you know, to put things bluntly, to die or to fold. And, you know, this is a real problem.

AMY GOODMAN: I just want to note, Heather Cox Richardson, in her newsletter, points out that we’re talking about “the single biggest increase in funding to — 

CHRIS LEHMANN: Yes.

AMY GOODMAN: — “immigration enforcement in the history of the United States,” increasing ICE’s detention budget from $3.4 billion a year to $45 billion through September 2029, a staggering 365% increase on an annual basis that would permit ICE to detain at least 100,000 people at a time. Your final comment, Chris Lehmann, as we move on to talk about one of the people who’s in that detention system, Mahmoud Khalil?

CHRIS LEHMANN: Well, I think it’s, again, important to outline, in this case, that this boondoggle to the repressive and, you know, illegal ICE detention system comes on the back of another Democratic capitulation. The same Democratic Senate voted to endorse the Laken Riley Act, which erected this new system of detention and rendition that’s operating illegally and without accountability in our country, after, prior to that, the Democrats eagerly touted a Republican immigration reform that included many of these same draconian provisions. So, again, it’s a failure of effective resistance and moral leadership on the part of the Democrats. And yeah, it’s a disastrous amping up of this shadow, you know, fascist state.

AMY GOODMAN: And just to put an underscore on it, Heather Cox Richardson writes, “It increases ICE’s budget for transportation and removal operations by 500%, from the current $721 million to $14.4 billion. It also calls for [$46.5 billion] for construction of barriers at the border, including completing 701 miles of wall, 900 miles of river barriers, and 629 miles of secondary barriers, and replacement of 141 miles of vehicle and pedestrian barriers.” It calls for $45 billion for adult and family detention, enough to detain at least 100,000 people at a time.

Chris Lehmann, I want to thank you for being with us, D.C. bureau chief for The Nation. We’ll link to your piece, “Trump and Johnson’s Big Ugly Lie.”

When we come back, the jailed Palestinian activist who should have been walking across the graduation stage at Columbia this week, instead jailed in Jena, Louisiana, Mahmoud Khalil, testified at his asylum hearing Thursday that if he is deported, it could result in “assassination, kidnapping, torture.” Hours before the hearing, Mahmoud Khalil got to hold his 1-month-old baby Deen for the first time in Deen’s little life. We’ll get an update from Mahmoud Khalil’s lawyer, Ramzi Kassem. Back in 20 seconds.

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AMY GOODMAN: Emel Mathlouthi, Tunisian singer, performing on Sunday night at the People’s Graduation for Columbia students, held in a church near the campus in honor of the Palestinian activist Mahmoud Khalil.

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Mahmoud Khalil: Jailed Activist Testifies Before Immigration Judge and Holds His Child for First Time

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