CBO: House Republican budget bill will slash Medicare, Medicaid - National & International News - WED 21May2025 -

CBO: Republican budget bill will slash Medicare, Medicaid.

US intelligence leaks Israeli plans to attack Iran.

CBO: Republican budget bill will slash Medicare, Medicaid

The nonpartisan Congressional Budget Office has released its analysis of the House budget legislation, which contains most of President Trump’s taxation and spending priorities. With the currently proposed tax cuts, the very wealthiest Americans will see the lion’s share of the benefits, while increasing the deficit by $2.3 trillion over the next 10 years.

Meanwhile, programs that millions of Americans rely on, including Medicare and Medicaid, food stamps and other safety net programs will see massive cuts. The CBO estimates that the budget, as currently written, will force nearly $500 billion in cuts to Medicare beginning in 2026. Cuts to Medicaid, which serves low income Americans, could remove healthcare coverage to nearly 9 million Americans. Those cuts will also impact the 13 million Americans who are on both Medicare and Medicaid, relying on Medicaid to cover premiums and copays.

Market sell off over federal debt bomb

While the CBO’s analysis has trimmed the previous forecast for the bill’s effect on the deficit (from an increase of $4 trillion to an increase of $2.3 trillion), this is still a massive addition to the federal deficit, and one that is unlikely to spur any economic growth over the next 10 years. As a result, credit rating agency Moody’s recently downgraded the US from its coveted AAA rating. This now makes it more expensive for the US to service its existing debt and to borrow money.

On the news that the House may vote on the bill as soon as tonight, Wall Street stocks suffered their latest tumble of many in recent weeks. This was partly due to concern over the deficit ballooning bills effect on US bond yields.

The bill’s cuts to vital programs and its explosive increase in the debt could be avoided by increasing the top marginal tax rate for the very wealthiest Americans back to pre-2017 levels. In fact, President Trump himself proposed this to Republicans on Capitol Hill just a few weeks ago, but House GOP leadership rejected this out of hand. Trump has also repeatedly insisted that Medicare and Medicaid must not be cut. Again House Republican s have paid no heed.

Trump has previously been responsive to tumult on Wall Street as well as concerns over the bond market. However, he has not yet taken a stand against his own party to stave off economic chaos.

From CNN: The 10 richest Americans got $365 billion richer in the past year. Now they’re on the verge of a huge tax cut.

Wealthiest Americans hold most of US debt (which the House wants increase to give the wealthy massive tax cuts).

Now, here’s some good news! Senate unanimously passes No Tax on Tips Act.

US intelligence leaks Israeli plans to attack Iran

This morning, CNN cited unnamed US intelligence sources revealing recent intelligence assessments that indicate Israel is planning to attack Iran’s nuclear facilities imminently. Your intelligence had warned back in February that the chances were high that Israel would attempt such a strike on Iran sometime this year. Officials say this new heightened assessment is based on intercepted communications and recent movements of Israel’s armaments and military exercises.

These revelations come as the US continues to negotiate with Iranian officials in hopes of reinstating the Iran nuclear deal. Those negotiations may have hit a wall recently after Trump’s special envoy Steve Witkoff proclaimed that the new US position was not to allow Iran to enrich uranium at all. This marked a severe hardening of the US’ negotiating position. Barring any enrichment would effectively prevent Iran, a country of 91 million people, from using nuclear energy even for civilian purposes, such as supporting their power grid. Tehran have stated that this position is a non-starter.

What’s behind US leak?

There has been much speculation about the decision to leak Israel’s intentions to the media at this time. On the one hand, it could be a negotiating ploy to push Tehran to make further concessions in the nuclear talks. On the other hand, the US may have leaked the intel as a warning to Iran and in hopes of preempting this drastic escalation by Israel.

The Trump administration has taken pains to publicly air disagreements with Israeli Prime Minister Benjamin Netanyahu, both over Iran and Israel’s continued brutal military onslaught in Gaza. However, in general terms, the relationship between the US and Israel has remained largely unchanged. Despite his reported angst over Israel’s actions in Gaza, which many see as a genocide, President Trump continues to supply Israel with the US-made weapons that make these actions possible.