Trump Signs Largest US Wealth Transfer Budget Cutting Medicaid, Food Aid

President Donald Trump signed a sweeping tax and spending bill into law on July 4, 2025, which includes significant cuts to Medicaid and food assistance programs while extending tax cuts for the wealthy, sparking criticism from Democrats who argue it harms millions by cutting vital social safety nets. The bill also raises concerns about increased housing and energy costs and intensifies immigration enforcement, with ads already targeting Republican lawmakers who supported the measure. In response, some state leaders, like Massachusetts Governor Maura Healey, moved quickly to adjust their state budgets amid uncertainty caused by the federal law, cutting millions from state spending and delaying payments to local entities. Supporters of the bill argue that the spending reforms are modest and necessary to curb federal waste and unsustainable spending growth, noting the bill will barely reduce the overall growth of government expenditures. Critics, including House Minority Leader Hakeem Jeffries, denounce the legislation as an assault on healthcare and social programs, highlighting the sharp partisan divide over the bill's impact and moral implications.