CBO: GOP Bill Cuts $1.6K From Poor, Adds $12K for Rich/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The Congressional Budget Office says House Republicans’ megabill would cut $1,600 in annual resources from the poorest Americans while giving the wealthiest a $12,000 boost. Middle-income households would see a modest gain of up to $1,000, mainly from tax cuts. The proposal extends Trump-era tax cuts and slashes safety-net programs like Medicaid and food assistance.
GOP Megabill Would Cut Resources for Poor, Enrich Wealthy – Quick Looks
- CBO says lowest-income households lose $1,600/year under GOP’s domestic policy bill.
- Top earners would gain $12,000/year, mostly from tax relief and SALT deduction expansion.
- Middle-income earners would gain $500–$1,000, less than 1% of their income.
- Cuts target Medicaid, food aid, and other safety-net programs, disproportionately affecting the poor.
- Tax changes extend the 2017 Trump tax cuts, delivering significant gains to wealthier households.
- The poorest Americans lose nearly 4% of their income, while the wealthiest gain over 2%.
- Bill aligns with Trump’s 2024 campaign promises to cut taxes and shrink federal aid programs.
- Stephen Miller and Tom Homan brief GOP senators to push for robust border security funding.
- Sen. Rand Paul and Sen. Lindsey Graham propose rival frameworks for the homeland security portion of the bill.
- Democrats are expected to oppose the bill fiercely, citing disproportionate harm to vulnerable populations.
Deep Look: CBO Says GOP Megabill Would Strip $1,600 From Poor, Add $12K for Wealthy
WASHINGTON — June 12, 2025 — A new analysis by the Congressional Budget Office (CBO) reveals stark consequences for economic inequality under the House-passed GOP megabill, showing that the poorest Americans would lose an average of $1,600 annually while the wealthiest households would gain $12,000.
The nonpartisan report outlines the impact of a sweeping domestic policy package, which includes extending 2017’s Trump-era tax cuts and cutting key safety-net programs such as Medicaid and food assistance. The bill is central to President Donald Trump’s legislative agenda, with the administration pushing to finalize it this summer.
Rich Gain, Poor Lose
According to the CBO, the bottom income tier — America’s lowest earners — would lose nearly 4% of their total income through reduced federal resources. These reductions would come primarily from cuts to federal aid programs, which many low-income families rely on for healthcare, housing, and food security.
Meanwhile, the top income households would see a 2% increase in annual income, thanks largely to expanded tax breaks and changes to the state and local tax (SALT) deduction, a benefit mostly utilized by high-income earners in wealthier states.
The bill would also provide modest gains of $500 to $1,000 annually to middle-income families. However, this amounts to less than 1% of their total earnings, making it a comparatively minor benefit.
GOP Pushes for “Big, Beautiful Bill”
The legislation is a centerpiece of President Trump’s post-reelection agenda. Stephen Miller, a top White House adviser, will brief Senate Republicans on Thursday to rally support for the plan, dubbed by the administration as the “big, beautiful bill.”
The package has already cleared the House, but the Senate is divided on how to proceed, particularly around the bill’s border security provisions. Sen. Rand Paul (R-Ky.) is expected to propose a version with scaled-back homeland security funding, while Sen. Lindsey Graham (R-S.C.) is preparing a counterproposal more aligned with Trump’s original vision, especially around robust immigration enforcement.
2017 Tax Cuts Resurface
The CBO’s report highlights how the megabill would reinstate and expand key features of the 2017 Tax Cuts and Jobs Act (TCJA) — Trump’s landmark tax legislation. The new bill would make many of those cuts permanent, significantly lowering tax obligations for top earners and corporations.
Also included is a revival of the SALT deduction cap increase, which disproportionately benefits wealthy homeowners in high-tax states, such as New York, California, and Illinois.
Democrats have long criticized the 2017 tax law for ballooning the federal deficit while favoring the rich, and the latest version is expected to meet even more intense opposition.
Social Safety Nets Targeted
On the flip side, the CBO confirms that cuts to Medicaid, SNAP (food assistance), housing subsidies, and child care are the primary sources of budget reductions affecting lower-income households.
Advocacy groups warn that such cuts could trigger a rise in poverty and hunger. Economists estimate that the reduction in federal benefits could impact millions of Americans, especially seniors, children, and people with disabilities.
A Political Fault Line
The CBO’s findings sharpen what is already shaping up to be a heated policy debate in Washington. Democrats argue the bill reflects a misplaced set of priorities, rewarding the wealthiest Americans while undermining basic support systems for the most vulnerable.
“It’s Robin Hood in reverse,” said one Democratic aide, who noted that upcoming election cycles will likely feature the megabill prominently.
With Trump and Republican lawmakers continuing to push for the bill’s swift passage, critics say the legislation prioritizes political loyalty over economic equity, risking long-term damage to the country’s most fragile communities.
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