After intense persuasion, numerous phone calls, personal meetings day and night at the White House, lengthy debates and the longest parliamentary speech in history, the final vote was reached in the House of Representatives: 218 votes in favor to 214 against. For Republicans, this became a reason for celebration, while opposition Democrats spoke of betrayal of the American people, writes the German public television ZDF on the occasion of the adoption of Donald Trump's new tax law, known as the "Big beautiful bill" or "Big beautiful law". After being voted on first in the Senate and now in the House of Representatives, the law must be signed by the president on the Fourth of July - the US National Holiday. According to the German media ARD, it will have quite unpleasant consequences for millions of Americans. "The poorest Americans will pay for Trump's celebrated tax cuts", the media outlet commented.
ZDF explains that criticism is mainly directed at the planned cuts to the American health program Medicaid. It supports low-income people and people with disabilities. The Congressional Budget Office has estimated that after the law takes effect by 2034, almost 12 million Americans will lose their health insurance.
Serious cuts to health care
In order to compensate for the reduction in tax revenues and ensure investments in border security, the law provides for cuts to Medicaid of almost one trillion dollars, ZDF explains. This is a health service that benefits more than 70 million Americans and almost half of all children, health expert Joan Alker told German public media.
According to her, families, pregnant women, people with disabilities, the elderly, veterans, migrants or low-wage workers whose jobs do not offer health insurance will be particularly affected. Until now, the program has helped those who could not afford private health insurance. Alker also said: "This is probably the largest redistribution of wealth from the poorest people in the United States to the richest".
The law also provides funds of $ 50 billion for hospitals in rural areas. But they are limited in time and will not be able to cover the cuts. Many of these areas already have too few maternity wards because many hospitals had to close. Alker worries that more hospitals will close as states are forced to cut Medicaid funding. "These cuts will do irreparable damage to our health care system," she says.
$185 billion in cuts are also planned for programs like SNAP, a government food assistance program that benefits families.
What's changing in taxes and benefits
The bill includes $4.5 trillion in tax cuts. Part of the proposed measures is the elimination of taxes on tips for restaurant, cafe and bar employees. Overtime pay will also be tax-free.
Child benefits will increase from $2,000 to $2,200, and every newborn will receive $1,000 in an index fund by 2028. Republicans tout these measures as positive elements for low-income families.
However, many calculations show that the tax cuts will mostly benefit high-income earners. A model from the University of Pennsylvania reveals that by 2033 the bottom 60 percent of American taxpayers will be worse off, while the richest 0.1 percent will be able to save more than $83,000, ZDF reports.
An analysis by the Yale University Research Center concludes that the benefits of the law are unevenly distributed. Low-income earners will even lose money, while those with more than $3 million in salary could receive an additional $118,000.
Republican politicians are responding to criticism, emphasizing that more people will now have health insurance, and those who have received benefits unfairly will be affected. They also point out that the law will create new jobs.
But this comes at a price, as it increases the record high debt. And this will repel investors, ARD comments in this regard. The media calls the law "The Big Ugly Law" and points out that it sets the wrong political priorities. For example, new billions will flow into border security and defense. But does the US really need to become a fortress, ARD asks. And does the country need a "Golden Dome" - a missile defense system on the Israeli model? These are megalomaniac projects. And on the climate, Trump is overturning everything that his predecessor Joe Biden had initiated. For example, the bonus for buying an electric car is being eliminated, but SUV drivers will receive discounts if they buy a car made in the United States.
The implementation of the measures may be postponed
However, Joan Alker pointed out to ZDF that the implementation of the measures could be postponed - even until the important midterm elections in the fall of 2026, which could lead to a change in the balance of power in the Senate and the House of Representatives.
"Republicans know that these rules are not liked by voters and do not want to go to the polls at a time when many people are losing their health insurance," says Alker. For President Trump, however, this law is the fulfillment of one of his campaign promises - major cuts to social programs and new obligations of many trillions of dollars, the media summarizes.