A new law signed on July 4, 2025, by President Trump, is projected to increase the number of uninsured Americans by 10 million by 2034, according to the Congressional Budget Office (CBO).

The legislation is expected to add approximately $3.4 trillion to the federal deficit over the next decade, reflecting a slight increase from earlier estimates due to final legislative adjustments.

To secure final votes, the bill was modified to include a $50 billion fund for rural hospitals, aiming to sway holdout lawmakers.

The law also introduces work requirements for many low-income Medicaid enrollees, affecting around 4.8 million people, and restricts federal aid for college students, making higher education less affordable.

California Governor Gavin Newsom criticized the bill, claiming it jeopardizes 686,000 California jobs, cuts $28.4 billion in Medicaid funding, and disproportionately benefits the wealthy.

Despite over $1 trillion in projected health-related savings from Medicaid work requirements and other provisions, the CBO estimates the overall costs of the law will surpass these savings.

The law's passage and subsequent analysis have sparked ongoing political debates, with Democrats criticizing the bill as a betrayal and warning of its negative economic and healthcare impacts.

Polls show that two-thirds of Americans believe the bill primarily benefits the wealthy, despite Republican claims that it is a tax cut for all and will promote economic growth.

The legislation restricts federal financial aid for college students, especially affecting first-generation students and working families, notably in areas like the Central Coast.

Experts warn that while there may be short-term economic boosts, the long-term effects of rising debt and interest rates will likely be negative, with no estimates suggesting improved fiscal health.

The bill narrowly passed the House of Representatives with a 218-214 vote, with most Democrats opposing it over concerns about Medicaid cuts and fiscal impacts.

The legislation threatens agricultural sectors by reducing demand for produce and impacting small and mid-sized farms reliant on immigrant labor due to cuts in federal food assistance.

It includes significant cuts to Medicaid and food assistance programs, along with a faster phase-out of clean energy tax credits, which could impact vulnerable populations and sectors.