CBO Warns: Trump’s Tax-and-Spend Law Could Leave 10 Million Americans Without Health Insurance

CBO: Trump’s Tax and Spending Law Will Leave 10 Million More Americans Uninsured

WASHINGTON — Ten million additional Americans are expected to lose health insurance over the next decade as a direct result of President Donald Trump’s newly enacted tax and spending legislation, according to the latest estimate from the Congressional Budget Office (CBO).

The updated analysis, released by the nonpartisan agency, follows the law’s passage in July and revises an earlier projection that nearly 11 million people would be uninsured under previous drafts of the measure.

The legislation — passed entirely with Republican votes — extends tax cuts from Trump’s first term, adds new temporary tax breaks, and boosts certain spending. To offset those costs, the law introduces tighter eligibility rules and new requirements for Medicaid, the federal program that provides health coverage to low-income Americans.

Democrats criticized the bill as a windfall for the wealthy that shifts the burden onto the working poor. They argue the Medicaid restrictions will push millions off coverage, worsening healthcare disparities.

The CBO’s findings highlight stark income effects. The agency projects that the poorest Americans will lose an average of $1,200 per year in resources because of changes to taxes and benefits. By contrast, middle-income households could see gains between $800 and $1,200 annually, while the richest Americans will enjoy increases of more than $13,000 per year.

“The changes in resources will not be evenly distributed,” the CBO report states. “In general, resources will decrease for households toward the bottom of the income distribution, whereas resources will increase for households in the middle and toward the top.”

The report adds fuel to a political fight likely to dominate the 2026 campaign season, with Democrats pledging to reverse the Medicaid cuts and Republicans defending the law as a necessary step to spur economic growth.