Tag: trump budget cuts
Trump's Incompetence Left Thousands Freezing In the Dark Across MAGA South

Trump's Incompetence Left Thousands Freezing In the Dark Across MAGA South

We all know that Trump has declared war on Blue America. He has made clear that he intends to use the full power of the presidency to make the people who didn’t vote for him suffer. He is even going so far as to send in an armed force of invaders, as he did last fall in Chicago and is doing now in Minnesota. His masked gang openly flouts the law and the Constitution.

But ostensibly Trump loves his voters in the Red States. After all these are the people whose votes put him in office and kept him out of jail for the crimes he committed. Many of them also buy Trump merchandise, like his MAGA hats, his bible, and his playing cards. Some of them would probably even go to see Melania, if they had the opportunity. In principle, Trump would like to help these people, since they count as real Americans in his book.

Unfortunately, regardless of what Trump may desire, he is falling down badly on the job of ensuring the Red States hit by recent winter storms, Mississippi (Trump +23), and Louisiana (Trump +22), and Tennessee (Trump +30) have power and other essential services restored. Tens of thousands were still without power nearly a week after the storm.

It is difficult to quickly restore services after a major storm, especially in areas like these in the South that are not accustomed to severe winter weather. But it’s a safe bet that cutbacks to the Federal Emergency Management Agency and other government agencies that might have been involved in the recovery did not help.

It is also worth noting that if a Democrat were in the White House we can be absolutely certain that the Republicans would be screaming bloody murder over this failing. They would certainly be scheduling Congressional hearings and probably even looking to do criminal prosecutions.

This isn’t hypothetical. In the fall of 2024, after Hurricane Helene hit much of Southern Appalachia, President Biden quickly rushed in assistance through FEMA. This effort didn’t stop Republicans from yelling and screaming about how about how Biden had abandoned the area because they were Republicans. Elon Musk, the world’s richest person and biggest spreader of disinformation on the Internet, even pushed absurd stories about how FEMA was blocking aid and seizing packages.

The Republicans also blamed and continue to blame Biden for the inflation caused by the pandemic. Even though the supply-chain problems caused by the pandemic led to jumps in inflation in Canada, Europe, and elsewhere, Republicans pretended that the inflation was just the result of Biden’s blunders.

Their efforts were so successful that even Democratic consultants adopted their line, saying things like, “people don’t care about inflation in Germany and France, they care about the price of bread and milk.”

I won’t weigh in on whether the population lacks the ability to understand that a worldwide pandemic creates economic disruptions; but I will point out that it should be possible for Democrats to flip the story now that Donald Trump is in the White House and tens of thousands of people are suffering. It is in fact the government’s responsibility to prepare for disasters like the winter storms that hit last week.

It should have been able to respond quickly and ensure that the people in hard-hit areas had adequate food, shelter, and access to medical care. Insofar as this was not the case, it was a major failing of the Trump administration. Trump decided it was more important to terrorize the people of Minneapolis to score points against his political opponents than to help his own supporters get through the winter.

Elon Musk’s DOGE chainsaw cut down government workers who might have helped the people in these Red states in an emergency. Trump and the Republican politicians who backed them should be held responsible for this situation. With the Trump administration causing so much chaos and destruction in so many areas, perhaps his failing to protect his supporters in the South should not be at the top of anyone’s agenda. But it does deserve to be on Trump’s greatest hits list.

Dean Baker is a senior economist at the Center for Economic and Policy Research and the author of the 2016 book Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. Please consider subscribing to his Substack.

Reprinted with permission from Dean Baker.

Scrooge Economics: The GOP Assault On SNAP And Medicaid Will Devastate Millions

Scrooge Economics: The GOP Assault On SNAP And Medicaid Will Devastate Millions

If you’re like me, your mail and email inboxes are filled this holiday season with pleas for donations from charitable organizations that help people on the lower rungs of the economic ladder. Now more than ever they need our help because of the draconian cutbacks in funding contained in the legislation passed by the Republican Congress last July and signed into law by Donald Trump.

During the six-week government shutdown this fall, Democrats fought a worthy yet unsuccessful battle to renew the Biden-era’s increased Obamacare subsidies. Without them, millions of working people without employer-based coverage (the self-insured) won’t be able to afford their health insurance.

As of this writing, it seems unlikely the negotiations promised when the shutdown ended will succeed in reversing those cuts. Millions of people are expected to drop coverage next year because of the dramatic increase in their health insurance premiums.

Less attention on Medicaid/SNAP cuts

While those discussions are underway, few on Capitol Hill are talking about reversing the cuts to Medicaid and the Supplemental Nutrition Assistance Program (commonly known as food stamps), which won’t hit in full force until 2027. This was a strategic decision by the GOP to hide their full impact from voters until after the mid-term elections. Those cuts will affect far more people that the Obamacare premium increases.

Indeed, the Medicaid/SNAP cuts will be the biggest reductions in federal assistance for the poor in U.S. history. It’s already forced thousands of legal immigrants in the U.S. off of Medicaid. The Congressional Budget Office estimates it will eventually remove an estimated 7.5 million people from the program, mostly by setting up bureaucratic roadblocks to re-enrollment for people who already meet the law’s new work requirements.*

Those Medicaid cuts will account for three-fourths of the 10 million people expected to lose health care coverage over the next decade under the One Big Ugly Bill. Meanwhile, about 40 million people will receive smaller food subsidies unless states step in to help — an unlikely outcome in most areas of the country.

For anyone who cares about deficits, pay attention to the underlying math. The cuts to Medicaid and SNAP will reduce federal expenditures by about $1.1 trillion over the next decade. Extending the Obamacare subsidies would cost about $350 billion. The new and renewed tax cuts for corporations and the well-off will cost the Treasury about $4 trillion. Couldn’t they make do with just $2.5 trillion in tax cuts and leave the poor and self-insured alone?

Donald Trump and the GOP, meet Ebenezer Scrooge. You have a lot in common.

Cuts will affect everyone

These Medicaid/SNAP cuts aren’t going to affect just the poor and working class. They will hit everyone with employer-based coverage. Premiums for private coverage will rise even faster than now (six to seven percent on average for next year) due to the higher levels of uncompensated care given to the growing number of uninsured people who will be visiting the nation’s emergency rooms, where care is the most expensive.

It will also hit everyone who pays state and local taxes since states will be forced to pick up a higher share of the overall cost of Medicaid. The single biggest “revenue raiser” in the bill is a reduction in the tax that states are allowed to levy on health care providers. These provider taxes are used by states to pay for their share of the Medicaid program. They also increase the matching amount paid by the federal government. Every state but Alaska levies provider taxes, so this will be a big-time loss for almost every state in the country and their taxpayers.

Medicaid is the second largest expenditure in every state budget, just behind K-12 education. State and local officials, who must balance their budgets, will have just three options when faced with these draconian cuts. They can take money from other budgets like education (unlikely); they can raise taxes (a few blue states, maybe); or they can cut services (the most likely).

There are only two ways to cut services. They can eliminate non-emergency services like preventive screening, dental care and nascent programs to provide healthy food and shelter. These are precisely the kinds of services that prevent illnesses like cancers or tooth abscesses, which are far more costly to treat when left to fester. Cutting services is a penny-wise, pound-foolish alternative.

The other option is cutting Medicaid provider reimbursement rates, which are already lower than either Medicare or private insurance rates. Low physician payment rates are the main reason why only 70 percent of the doctors in the U.S. treat Medicaid patients, unlike the more than 95 percent who treat Medicare patients. Health care access will become immeasurably worse should states pursue this strategy.

“Things are going to get a lot worse"

Either way, the looming Medicaid cuts will have a major impact on health care systems across the country, which are usually the largest employer in every town, city and county. People with fewer SNAP benefits spend less at grocery stories.

A recent Commonwealth Fund study estimated state gross domestic products would fall by $154 billion by 2029, which is more than the federal government would save, and cost over 1.2 million people their jobs. State and local tax revenue would fall by $12 billion.

But the harshest impact will be on providers who are heavily dependent on Medicaid patients for most of their funding, which are urban safety net and rural hospitals. The GOP legislation set up a $10 billion-per-year fund for five years to help rural hospitals. But half its money will be evenly divided among the 50 states — a pittance compared to all the cuts coming down the pike. Moreover, it will do nothing for urban safety net hospitals, which are overwhelmingly located in Democratically-run cities.

The bottom line is that hospital systems and local physician groups dependent on Medicaid will face greater financial struggles, layoffs and closures. “Safety nets are struggling right now,” Dr. Erik Mikaitis, the CEO of Cook County Health, told a health care forum sponsored by Crain’s Chicago Business on Wednesday morning. The system gets 56% of its $5.14 billion budget through Medicaid. “Things are only going to get a lot worse.”




Merry Christmas! Trump's Aid Cuts To Spike Child Mortality Worldwide In 2025

Merry Christmas! Trump's Aid Cuts To Spike Child Mortality Worldwide In 2025

For decades, the United States has played a major role in reducing child mortality. The Trump administration’s stance seems to be “well, what if we didn’t?”

The Gates Foundation issued a report Thursday that said about 200,000 more children worldwide under age five have died or will die this year compared with 2024. Last year saw 4.6 million children die before their age 5, but that is projected to increase to 4.8 million in 2025.

This is the first time this century that annual child deaths have increased. Child deaths have declined sharply since 1990, when 11.6 million children under 5 died. Nations made a concerted effort to drive that rate down, and it’s a genuine miracle that the number of deaths has been more than halved in just 35 years.

Bill Gates called the Trump administration’s cuts to the U.S. Agency for International Development “a gigantic mistake,” which undersells it. The United States played a big role in decreasing child deaths, and now we are playing a pretty big role in increasing them.

The administration shuttered USAID in July because that is apparently now a thing we let the president do, even though the power to create and eliminate agencies rests with Congress. The courts stood aside as well, letting President Donald Trump slash billions in foreign aid.

These cuts have already directly impacted hundreds of thousands of children.

In Ethiopia, the cuts mean a shortage of hospital staff, leading to children being discharged prematurely. In Nigeria, children are dying from malnutrition. The administration is so dedicated to abject cruelty that it even destroyed food bound for children in Afghanistan and Pakistan, food that could have fed 1.5 million kids.

Impact Counter, which projects the human costs of these cuts, estimated that over 600,000 people have died, two-thirds of whom are children. Reviewing the breakdowns of that data and the methodology is an emotional gut punch. How do you feel about 14.7 million fewer children receiving treatment for pneumonia or diarrhea? How about roughly 168,000 children dying per year from malnutrition? And here’s malaria, where aid cuts are projected to lead to over 6 million additional child malaria cases.

Children are also at greater risk thanks to the arbitrary termination of maternal and child health funds. The administration did that even in the face of a USAID memo saying this would eliminate postnatal care for over 11 million children.

A modeling study published in The Lancet in April predicted that the cuts to this funding would reverse the decline in maternal and child deaths, with maternal mortality increasing 29 percent by 2040, under-five child deaths increasing by 23 percent in that time, and stillbirths by 13 percent. These are grim, brutal numbers, and Trump owns them.

The United States has removed itself from the global stage, stepping away from obligations and refusing to see itself as part of the larger world. Sure, millions of children may die, but that’s just the price we pay for “America First.”

Reprinted with permission from Daily Kos

Waking Up? Argentina Bailout Bares Trump's Contempt For Rural America

Waking Up? Argentina Bailout Bares Trump's Contempt For Rural America

Is rural America starting to fall out of love with Donald Trump?

Policy wonks like me have spent decades pointing out that if rural Americans voted based on their informed self-interest, they would be supporting Democrats, not Republicans. Republicans are constantly trying to eviscerate Democrat-supported programs that benefited rural states like Medicaid spending, SNAP (the supplementary nutrition program formerly known as food stamps), and school lunches. Trump is also cutting subsidies for green energy programs like solar farms and wind turbines – subsidies that disproportionately went to red states. Iowa gets 63 percent of its electricity from wind!

Moreover, these programs in effect subsidize rural areas with dollars earned in urban areas: because rural areas have lower incomes than urban areas, rural Americans pay relatively little of the taxes that finance these programs. So Democratic “big government” is highly beneficial to the heartland.

Yet economic self-interest has been swamped by “rural consciousness.” This consciousness rests on a belief that highly educated urban elites don’t understand or value rural culture and rural lives. And I will admit that this belief contains a grain of truth. Urban elites are unlikely to fully understand the attachment of rural Americans to a particular place and its time-worn rhythms of life. Ensconced in salaried jobs, urban dwellers are unfamiliar with the constant anxiety of being a farmer or a small business owner in the heartland.

Decades of being battered by the economic changes -- deindustrialization, farm consolidation and corporatization, depopulation, loss of community ties, along with the loss of jobs, particularly “male-coded” jobs – have left rural Americans feeling adrift, marginalized and resentful.

And this created an opening to be exploited by the right wing. Much like how Trump peddled fantasies of a manufacturing resurgence or the return of coal-mining jobs, MAGA leveraged the deep discontent within rural America to inculcate the belief that only Republicans, and Trump in particular, respect rural voters. But this is false: MAGA actually holds its most loyal voters in contempt.

And the reality of this contempt is starting to show through — not, at least so far, via the One Big Beautiful Bill’s savage cuts to health care, which will be especially devastating to rural areas, but via the Trump administration’s bizarre fixation on aiding President Javier Milei of Argentina.

The truth is that rural America is even more dependent than urban America on the programs now on the chopping block. The nonpartisan Economic Innovation Group has mapped out where in America people depend for a large share of their income on government transfers: the counties where a lot of income comes from government programs, indicated in yellow, are overwhelmingly in rural areas, while the places where such aid plays a relatively small role (light blue) mainly correspond to major metropolitan areas:

Why has rural America become increasingly dependent on government aid? The main answer is declining economic opportunity, which has led to an exodus of young people, leaving behind an older population that relies on Social Security and Medicare. Even younger rural residents have low incomes that make them eligible for mean-tested programs, above all Medicaid and food stamps.

There shouldn’t be any shame about the fact that rural America is subsidized by more affluent parts of the nation. That is, after all, what a national social safety net is supposed to do. But it should make rural voters oppose politicians who support Project 2025-type plans to rip up that safety net, which will deeply impoverish already poor regions and degrade life even for those not personally receiving aid — for example, by leading to the closure of many rural hospitals, making health care inaccessible even to those who still have health insurance.

Yet rural voters went overwhelmingly for Trump last year. Why?

Many clearly felt that educated urban elites don’t understand their lives and values — which is true. Most people in New York or Los Angeles don’t have a good sense of what life is like in rural America. But the reverse is also true: Many, perhaps most rural Americans imagine that the surprisingly safe and livable city where I’m writing this is a crime-ridden hellscape, that Chicago and Portland are “war zones,” and so on.

Rural voters may also have imagined that they would be protected from the harsh treatment being meted out to blue cities. After all, our political system gives rural voters disproportionate influence. Wyoming and the two Dakotas combined have roughly the same population as Brooklyn, yet they have six senators while Brooklyn has to share two senators with 16 million other New Yorkers.

For both reasons, rural voters either tuned out or refused to believe warnings that a Trump victory in 2024 would be catastrophic for the heartland, that crucial programs would be eviscerated and the agricultural economy would be devastated by Trump’s trade wars.

I thought that rural voters might finally start to realize that they have been taken for a ride when the cuts began kicking in. This will begin to happen next month, when the 22 million Americans, many of them in rural areas, who receive subsidies to help buy health insurance under the Affordable Care Act will see their premiums soar, on average by more than 100 percent. It will happen even more dramatically late next year (after the midterms), when the big cuts to Medicaid and food stamps kick in.

An aside: When I went to the relevant government page to look up food stamp data, I was confronted by this banner:

This is not how government for the people is supposed to work, and we shouldn’t lose our sense of outrage.

But back to a possible rural awakening: It may be starting ahead of schedule, thanks to, of all things, the Trump administration’s efforts to bail out Argentina’s Javier Milei.

The attempt by Trump and Scott Bessent, the Treasury secretary, to rush $20 billion to Argentina isn’t a big deal compared with the planned savage cuts to crucial programs. But it’s a graphic demonstration of the administration’s hypocrisy. After all the America First rhetoric, all the insistence that spending must be slashed, suddenly we’re sending lots of money to a foreign nation in which we have no real interest except for the fact that its president is a MAGA favorite. I don’t know how many voters are aware that these moves are in large part an attempt to bail out Bessent’s hedge-fund buddies, but I think the sense of something wrong and corrupt is leaking through.

Furthermore, from farmers’ point of view, Argentina is a rival — a big soybean exporter at a time when Trump’s trade war has locked our own farmers out of China’s market.

And as emphasized in a recent conversation between Greg Sargent and a rural Democratic activist, farmers have been shocked and outraged by Trump’s casual suggestion that he might start buying Argentine beef to sell in the U.S. market. That conveys the impression that Trump doesn’t care at all about his most loyal followers — an impression that is completely correct.

We shouldn’t expect rural America to suddenly do a 180 and abandon Trump. Sargent sends us to a lament from one rancher who calls the idea of buying Argentine beef an “absolute betrayal” — but begins by saying to Trump, “We love you and support you.” The sheer extent to which rural Americans have been hoodwinked will make it hard for them to admit their error.

But there are at least hints of a rural awakening. And for the sake of the nation urban and rural Americans share, it can’t come fast enough.

Paul Krugman is a Nobel Prize-winning economist and former professor at MIT and Princeton who now teaches at the City University of New York's Graduate Center. From 2000 to 2024, he wrote a column for The New York Times. Please consider subscribing to his Substack.

Reprinted with permission from Paul Krugman.

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