President Donald Trump signed a comprehensive reconciliation package on July 4, 2025, that extends tax cuts and phases in reductions to Medicaid. The legislation, finalized after months of negotiations with Republicans, represents a major legislative achievement for the Trump administration. However, the bill includes the largest cuts to Medicaid in U.S. history and is projected to trigger a $500 billion reduction in Medicare funding. Critics warn that the package will reduce food assistance benefits, potentially lead to the closure of nursing homes and rural hospitals, and increase costs for health care, energy, and housing. The bill has been characterized by opponents as delivering substantial tax benefits to the wealthiest individuals and corporations while imposing hardships on working families. Some lawmakers have highlighted that these measures come amid rising costs for American families, exacerbated by tariffs enacted earlier in the administration. The debate over the bill's impact on public services and economic inequality continues among policymakers.