SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
To donate by check, phone, or other method, see our More Ways to Give page.
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
The House budget is the Make America Immobile Act. Trump is doing his best to freeze things in place: on behalf of oil companies that want to keep pumping oil, on behalf of automakers that want to keep churning out SUVs.
Credit where due: I am ever impressed by the feral energy of U.S. President Donald Trump and his crew, who are able to do an extraordinary amount of damage every single damned day. And somehow their energetic cruelty seems to drain my own reserves: I want to stay in bed. But we fight as best we can, and so here’s my assessment of one dire day, and more importantly what we still might be able to do about it.
It began, early Thursday morning, with House passage of the budget bill, which somehow managed to get even worse in the wee hours. Among other things, a single sentence was amended in such a way as to potentially kill off most of the rooftop solar industry in the U.S. As Heatmap’s Matthew Zeitlin explains:
While the earlier language from the Ways and Means committee eliminated the 25D tax credit for those who purchased home solar systems after the end of this year (it was originally supposed to run through 2034), the new language says that no credit “shall be allowed under this section for any investment during the taxable year” (emphasis mine) if the entity claiming the tax credit “rents or leases such property to a third party during such taxable year” and “the lessee would qualify for a credit under section 25D with respect to such property if the lessee owned such property.”
That arcane piece of language was enough to knock 37% off the share price of SunRun today, the biggest rooftop installer in the country. And it was only a cherry on the top of this toxic sundae, which would essentially repeal all of the Inflation Reduction Act (IRA). Nuclear power gets a little bit of a reprieve, and of course ethanol (Earth’s dumbest energy source) does great. But it’s a wipeout far greater than anyone expected even a few weeks ago. Here’s how Princeton’s Jesse Jenkins and his team at REPEAT (Rapid Energy Policy Evaluation and Toolkit) sum it up:
In the midst of all this, the Senate—ignoring its parliamentarian—bowed to the wishes of the auto industry and told California (and the 11 states that had followed it) that it couldn’t demand the phaseout of internal combustion vehicles by the middle of the next decade. (This is among other things federalism in reverse).
“Attacking these waivers will devastate our ability to advance the use of electric vehicles in the state,” California Attorney General Rob Bonta said in a press conference after the vote, flanked by California Gov. Gavin Newsom and other officials. “We won’t let it happen, not when we’re facing an air pollution and climate crisis that’s getting worse by the day.”
The 1970 Clean Air Act permits California to receive waivers from the Environmental Protection Agency that enable the state to enact clean air regulations that go further than federal limits.
Oh, and then at day’s end the Department of Homeland Security told Harvard that 27% of its student body couldn’t study there beginning in the fall because they came from foreign countries.
If you add it up, this is all an effort to keep America precisely where it is now. It’s the Make America Immobile Act. Trump is doing his best to freeze things in place: on behalf of oil companies that want to keep pumping oil, on behalf of automakers that want to keep churning out SUVs. That depends, among other things, on shutting down research at universities, because they keep coming up with things that point us in a different direction, be it temperature readings demonstrating climate change or new batteries that enable entirely different technologies. If America lived alone on this planet that would be truly terrible; luckily for everyone else, there are other places (China, and the E.U.) that are not making the same set of stupid decisions. But if this stands it will kill the future for America.
It will also, of course, kill the present. I’m not bothering to talk about the deep cruelty of the Medicaid cuts (and the fact that they will destroy America’s rural hospital system). There’s also the not-small matter of the intense attacks on transgender people the bill contains. And I won’t bother gassing on about the utter grossness of handing over yet more money to the richest among us. (The top 0.1% of earners gain $390,000 a year on average, while Americans making less than $17,000 lose on average about $1,000. This is, among other things, Christianity in reverse).
So, our job is to do what we can to make it… less worse. The U.S. Senate still has to pass its own version of the bill. Given the GOP majority, they’ll pass something very bad. Perhaps, at Trump’s urging, they’ll rush it through in the next 24 hours; more likely it will take a little longer. We need to put as much pressure as we can on that process, in order to take out the most egregious parts of the bill. Here’s what Third Act sent out on Thursday, and here’s the link we want you to use to register your opposition with Senators. It comes from our very able partners at Solar United Neighbors, who have done as much as anyone in America to help people build clean energy. Fill it out so you can get a call script and the numbers to use. Again, here’s the link. If you want a little inspiration, check out Will Wiseman’s video of rural Americans talking about one particular part of the IRA that’s helping change their lives.
I’m not going to bother pretending that this is guaranteed to work. The bad guys here are riding hard and fast, and they’re trying to shock and cow us into submission. But—don’t go easy. If they can summon the feral energy to wreck the country, we can summon the humane energy to try and save it.
"Millions of Americans will see their healthcare, food, and education costs skyrocket, all so House Republicans can hand themselves and their wealthiest donors a huge tax break."
Just five weeks after pledging that they would not support the Republican Party's budget reconciliation package if it included cuts to Medicaid, six GOP lawmakers ultimately did just that on Thursday morning—and an analysis by government watchdog Accountable.US suggested they voted for the legislation to benefit themselves, despite the suffering it would cause for their constituents.
Along with cutting Medicaid for close to 14 million Americans and slashing nearly $300 billion in food assistance, the bill Republicans voted on in the early morning hours after weeks of deliberation included a tax policy proposal to expand a provision called Section 199A, which was previously introduced during the first Trump administration as part of the GOP's original law providing tax breaks for corporations and the wealthy.
The bill that passed in the House Thursday would raise the percentage of qualifying business income—such as rental income—people can deduct from their taxes from 20% to 23%. The provision is now set to expire at the end of the year.
If it's extended as written in the reconciliation bill, Accountable.US identified six Republican House members who could directly benefit from the expansion of the "pass-through deduction": Reps. Rob Bresnahan of Pennsylvania, Rob Wittman of Virginia, Jen Kiggans of Virginia, Young Kim of California, Juan Ciscomani of Arizona, and Jeff Van Drew of New Jersey.
Those six lawmakers were among the 12 who last month wrote to GOP leaders to say they represent "districts with high rates of constituents who depend on Medicaid" and to "reiterate our strong support for this program that ensures our constituents have reliable healthcare."
"We cannot and will not support a final reconciliation bill that includes any reduction in Medicaid coverage for vulnerable populations," wrote the lawmakers last month. "Cuts to Medicaid also threaten the viability of hospitals, nursing homes, and safety-net providers, nationwide. Many hospitals—particularly in rural and underserved areas—rely heavily on Medicaid funding, with some receiving over half their revenue from the program alone."
"It is the peak of hypocrisy that the loudest and most vocal opponents of Medicaid cuts cowered in a matter of days in favor of a bill that will make the largest cuts to Medicaid in modern history—all to pay for lower taxes for the richest."
With the six Republican members poised to earn thousands more each year from the pass-through income deduction, those concerns appeared to have evaporated on Thursday.
"It is the peak of hypocrisy that the loudest and most vocal opponents of Medicaid cuts cowered in a matter of days in favor of a bill that will make the largest cuts to Medicaid in modern history—all to pay for lower taxes for the richest," said Tony Carrk, executive director of Accountable.US. "Even worse, those very members stand to financially gain from those tax cuts, while their own constituents lose their healthcare. Their votes aren't just a flip-flop; they are a betrayal to hardworking Americans everywhere who will be worse off because of this bill."
Accountable's Cash in Congress project found that for the 2023 tax filing year, the six members of Congress earned a combined $327,000 in pass-through income, according to financial disclosures.
Bresnahan stands to benefit the most from the extension of Section 199A, The American Prospectreported, as he earned at least $137,000 from rental properties. Out of the six lawmakers, he also represents the most Medicaid beneficiaries: 230,000.
Wittman reported $105,000 or more in pass-through rental income, and represents 125,000 people who receive Medicaid. Kiggans reported $50,000 and represents 130,000 people who use the healthcare program for low-income Americans.
All together, reported The American Prospect, the lawmakers represent 971,000 Medicaid beneficiaries who could be affected by a work requirement amendment that would go into effect at the end of 2026 and other provisions.
"Millions of Americans will see their healthcare, food, and education costs skyrocket, all so House Republicans can hand themselves and their wealthiest donors a huge tax break," said Accountable. "The only 'winners' in this bill are the billionaires that paid for it."
It takes programs that millions rely on—Medicaid, food assistance, student aid—and sacrifices them to fund tax breaks that primarily benefit those who already have the most. It’s a redistribution in reverse.
Imagine a woman in her late 20s, raising a young kid and working two jobs. On weekday mornings, she waits tables at a chain diner just off the highway. On weekends, she picks up banquet shifts at a hotel near the airport. Some weeks she hits 40 hours. Most weeks she doesn’t. Her schedule is built around whoever else calls off, whichever babysitter shows up, and how many tips she can pull in when customers don’t walk out on the check. She’s not lazy. She’s tired. She’s not failing. She’s just barely holding on.
She doesn’t ask for much—just enough to stay ahead of the next crisis. One sick day, one bounced check, one broken car door, and it all starts to unravel. Like nearly 60% of Americans, she’s living paycheck to paycheck. This isn’t some outlier story. It’s the American norm, life for millions of workers whose labor keeps the country running, even as their budgets can’t absorb a single emergency.
Last week, she saw a headline. The new House budget plan would eliminate federal income tax on tips. She read it twice. Finally, something for workers like her. Finally, a win.
This budget offers token relief while delivering sweeping cuts.
But what she didn’t see—what the headline didn’t say—is that while she might save a few hundred dollars come tax season, the same bill cuts the healthcare, food, and education programs that actually keep her afloat. It’s not a lifeline, it’s a tradeoff. And it’s a bad one.
Early Thursday morning, May 22, after days of internal negotiations and public brinkmanship, the House narrowly passed the “One Big Beautiful Bill,” a 1,100-page tax and spending package drafted with support from the Trump White House. Despite defections from within their own ranks, GOP leadership managed to push the bill through with no Democratic support and just enough Republican votes to avoid collapse. The measure now moves to the Senate, where further changes are likely, but the core architecture is intact.
The bill includes more than $3.8 trillion in tax cuts, most of which go to the wealthiest households and largest corporations. It makes permanent the 2017 Trump tax cuts, increases the estate tax exemption to $15 million per person, and expands loopholes for business income. According to the Institute on Taxation and Economic Policy, the top 1% of households would receive an average annual tax cut of approximately $79,000.
And the waitress? If she reports $10,000 in tips next year, she might see a refund boost of around $700. That’s her win. That’s what she gets.
But here’s what she could lose.
If her hours drop below 80 in a given month, and she can’t prove every one of them with pay stubs or employer forms, she could lose her Medicaid coverage. Under the latest version of the bill, these nationwide work requirements are no longer delayed until 2029. They’re scheduled to take effect as early as the end of next year. These requirements don’t just ask that you work. They ask that you document it, every month, without gaps. Miss a report, and your health insurance disappears. No phone call, no warning, just a closed file and an empty pharmacy counter.
If she misses work because her kid’s school is closed or a sitter falls through, she might lose Supplemental Nutrition Assistance Program (SNAP) benefits too, especially if she doesn’t fill out the right paperwork on time or fails to meet a new state threshold. The revised bill raises the age limit for mandatory work compliance and eliminates long-standing exemptions for parents. The moment her child turns seven, she’s treated like someone with no caregiving responsibilities at all. And for the first time in decades, states will be required to help fund those benefits. If they can’t, or choose not to, those benefits could disappear.
If she tries to go back to school to finish the associate’s degree she started, she may no longer qualify for a Pell Grant. The bill raises the minimum course load for a full award from 12 credits to 15, more than a full-time load at most colleges. For a working mother juggling jobs, that’s not just a higher bar, it’s a locked gate. She’d have to choose between working more hours to afford tuition or taking more classes she can’t pay for to receive aid. Either way, she loses.
And that’s the pattern. Across the board, this budget offers token relief while delivering sweeping cuts. It takes programs that millions rely on—Medicaid, food assistance, student aid—and sacrifices them to fund tax breaks that primarily benefit those who already have the most. It’s a redistribution in reverse. It shifts risk downward and wealth upward. It wraps itself in the language of freedom and choice, while quietly dismantling the systems that offer working people a shot at stability.
This isn’t a misunderstanding of how poverty works. It’s a bet that most people won’t notice until it’s too late. It counts on workers like her being too busy, too tired, or too stressed to read the fine print. It counts on the headlines focusing on the tip exemption, not the Medicaid paperwork that knocks her off coverage. Not the missed deadline that shuts off SNAP. Not the registration block that forces her to drop out of community college. It makes the punishment quiet and the payoff loud.
We know who this helps. And we know who it hurts.
As of late 2024, approximately 78.5 million Americans were enrolled in Medicaid or CHIP. In fiscal year 2023, 42.1 million participated in SNAP each month, and school meal programs served more than 4.6 billion lunches. The majority who rely on these services are children, seniors, and working families. By contrast, according to the Yale Budget Lab, fewer than 2.5% of U.S. households would benefit from the tip tax exemption, and only about 5% of low- and moderate-wage workers are employed in traditionally tipped occupations. And even among them, the average gain won’t cover a single unexpected car repair. The math doesn’t work. The logic doesn’t hold. But the politics do.
Because the waitress at the diner won’t get a press release when her SNAP balance goes to zero. She won’t get a spotlight when her kid’s lunch bill doubles or when she finds herself sitting in the ER without coverage. She’ll just keep showing up. Keep working. Keep holding the line with less and less help.
And that $700 refund?
It won’t pay for the inhaler when her daughter’s asthma flares up. It won’t buy a month of groceries when benefits are cut. It won’t fix the brake line on the car that barely starts. It won’t cover tuition when she’s one semester away from finishing a degree. It won’t save her when the safety net snaps under her feet.
No matter how “beautiful” they say the bill is, it won’t hold her life together when everything else is falling apart.