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House GOP Unveils $4.9 Trillion Tax Cut Bill Paired With Deep Medicaid Cuts and Border Funding

Washington, D.C., USA
May 15, 2025 0 Neutral I want money/finance advice
House GOP Unveils $4.9 Trillion Tax Cut Bill Paired With Deep Medicaid Cuts and Border Funding
Washington, D.C., USA: House Republicans revealed a sweeping $4.9 trillion tax cut plan extending and expanding Trump-era tax breaks. It permanently lowers income tax rates, boosts the child tax credit, and loosens estate tax thresholds. To offset costs, the bill proposes major Medicaid cuts and rolling back green subsidies—plus new border wall funding. The package also raises the debt ceiling by $4 trillion, aiming to avert default until 2026. Democrats decry it as a handout to the rich at the expense of the safety net. Even some GOP moderates balk at slashing Medicaid too deeply. President Trump urges Republicans to “UNIFY” behind the legislation.
What this means for you:
If passed, your paycheck withholding could drop—use that extra income to pay down debt or invest wisely.
Check whether expanding the child tax credit benefits your household and recalculate estimated taxes for the next filing season.
Those relying on Medicaid should watch for eligibility changes or coverage rollbacks—states often follow federal funding signals.
If you have significant assets (like real estate or family businesses), higher estate tax exemptions might influence estate planning strategies.

Key Entities

  • House Republicans (Ways & Means Committee): Leading authors of this massive tax and spending bill.
  • President Donald Trump: Strongly backing permanent extension of his prior tax policies.
  • Medicaid: Federal-state program covering healthcare for low-income Americans, targeted for cost-cutting in the bill.
  • House Speaker Mike Johnson: Championing the legislation as beneficial for economic growth.

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