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International Business Times UK
International Business Times UK
Health
Jim Manzon

New Medicaid Law Slashes $1 Trillion Placing Health Coverage at Risk for Twelve Million Americans

Rural hospitals and low-income clinics could be forced to close as new Medicaid work requirements take effect in December 2026 (Credit: Adhy Savala/Unsplash)

The One Big Beautiful Bill Act, signed into law by President Donald Trump on 4 July 2025, will slash roughly $1 trillion (£749 billion) from Medicaid and the Children's Health Insurance Programme over the next decade, stripping health coverage from nearly 12 million Americans who can't afford to lose it, according to the Congressional Budget Office.

The law scraped through Congress on razor-thin margins. The Senate passed it 51-50 following an overnight session on 1 July to 2 July, with Vice President JD Vance casting the tie-breaking vote, and the House cleared it 218-214 two days later. Every Democrat in both chambers voted against it.

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