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Trump's tax law could lead to $491B in Medicare cuts

By Associated Press  
   August 18, 2025

The federal budget deficits caused by President Donald Trump's tax and spending law could trigger automatic cuts to Medicare if Congress does not act, the nonpartisan CBO reported Friday. The CBO estimates that Medicare, the federal health insurance program for Americans over age 65, could potentially see as much as $491 billion in cuts from 2027 to 2034 if Congress does not act to mitigate a 2010 law that forces across-the-board cuts to many federal programs once legislation increases the federal deficit.

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