Nonpartisan CBO releases new letter at request of Whitehouse, Wyden, Merkley, Boyle showing GOP megabill triggers mandatory $45 billion cut to Medicare and $120 billion cut to non-Medicare programs in 2026
Big, Beautiful-for-Billionaires Law explodes deficit to fund tax cuts for the ultrawealthy and giant corporations
Washington, D.C. – The nonpartisan Congressional Budget Office released a letter yesterday at the request of Senator Sheldon Whitehouse (D-RI), Ranking Member of the Senate Finance Committee Ron Wyden (D-OR), Ranking Member of the Senate Budget Committee Jeff Merkley (D-OR), and Ranking Member of the House Budget Committee Brendan F. Boyle (D-PA) confirming that by exploding the deficit, President Trump’s Big, Beautiful-for-Billionaires Law will automatically trigger the Statutory Pay-As-You-Go Act, which will impose a $45 billion cut to Medicare in 2026, and $536 billion in automatic cuts to Medicare over nine years.
“We all know that Trump’s Big, Beautiful-for-Billionaires Law explodes the deficit with tax breaks for the ultra-rich and giant corporations, while slashing Medicaid and eliminating programs to feed hungry families. But Republicans are playing a shell game by hiding the sneak attack on Medicare that they tucked into their law,” said Whitehouse. “CBO has now confirmed it: Trump’s Big, Beautiful-for-Billionaires Law triggers sequestration next year, resulting in massive, mandatory cuts to Medicare and other treasured programs. No Republican who voted for this bill can credibly say that they want to protect Medicare.”
“If Republicans were serious about protecting Medicare from cuts, they wouldn’t have passed a bill that triggers half a trillion dollars in cuts to Medicare,” Wyden said. “The reality is, Trump said he wouldn’t cut Medicaid, and then he turned around and passed the biggest Medicaid cut in history. He said he wouldn’t hurt Social Security, and then he gutted its staff and set DOGE loose on the program like a pack of wild dogs. Trump and Republicans cannot be trusted with Medicare, and whatever promises they make about protecting the program are worthless.”
“Congressional Republicans’ dangerous Big, Betrayal Law not only guts programs like Medicaid, the Affordable Care Act, and food assistance, but today we’re reminded that it also forces cuts to Medicare and many other critical programs. Because Republicans were so hell bent on passing a law that gives tax cuts to billionaires – that adds trillions to the national debt – their reckless actions have now triggered automatic spending cuts – meaning that without future Congressional action, seniors and people with disabilities will pay the price and have less access to care,” said Senate Budget Committee Ranking Member Jeff Merkley. “This is just more of the Republicans’ families lose, billionaires win agenda and the American people won’t stand for it.”
“For months now, I have been sounding the alarm on the devastating Medicare cuts caused by Trump’s Big Ugly Law,” said House Budget Committee Ranking Member Brendan F. Boyle. “Republicans knew their tax breaks for billionaires would force over half a trillion dollars in Medicare cuts — and they did it anyway. American families simply cannot afford Donald Trump’s attacks on Medicare, Medicaid, and Obamacare.”
In early July, President Trump and Congressional Republicans jammed through their Big, Beautiful-for-Billionaires Bill, which cuts almost a trillion dollars from Medicaid and raises health insurance costs, all to bankroll tax breaks for billionaires and big corporations.
The CBO letter explains that the Republicans’ Big, Beautiful-for-Billionaires Law will increase deficits relative to the January 2025 baseline by $2.1 trillion through 2029 and by $3.4 trillion through 2034. The law’s addition to the deficit triggers the sequestration process under the Statutory Pay‑As‑You‑Go (PAYGO) Act of 2010. CBO estimates that the White House Office of Management and Budget will be required to issue a sequestration order to reduce spending by $415 billion in fiscal year 2026. Republicans could pass legislation waiving the PAYGO requirements, but did not include such a provision in the Big, Beautiful-for-Billionaires Law.
CBO estimates that OMB would be required to issue a 4% sequestration cut to Medicare, which is expected to cut $45 billion in 2026 and total $536 billion over nine years. Sequestration cuts to other non-Medicare programs are expected to total $120 billion in 2026.
A PDF of the CBO letter is available here.
