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Kiplinger
Kiplinger
Business
Donna LeValley

Tax Reconciliation Bill Could Trigger $500 Billion in Mandatory Medicare Cuts

Broken piggy bank to represent bad economy or investments.

President Trump's new tax bill, passed in the House and now headed to the Senate, could yield billions in mandatory cuts to Medicare. That's because projected deficits in the tax bill could trigger the Statutory Pay-As-You-Go Act of 2010 (PAYGO), unless Congress acts to intervene.

The pending House reconciliation bill could lead to over $500 billion in Medicare cuts from 2026 to 2034, as projected by the Congressional Budget Office (CBO).

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