The Republican-controlled US Congress has passed a budget bill that includes cuts to social programs like Medicaid and more funding for Immigrations and Customs Enforcement (ICE), alongside provisions that discourage wind and solar energy production. Passed after a marathon debate in both houses, it will allow President Donald Trump to realize policy goals he’s so far attempted to push through executive orders and Elon Musk’s Department of Government Efficiency (DOGE). Trump intends to sign the bill in a 5PM ET ceremony on Friday, July 4th.
The new budget moves funds away from Medicaid, clean energy tax credits, and other public services and toward Trump’s attempt to mass-deport both documented and undocumented immigrants. The bill extends a number of tax cuts that primarily benefit wealthy Americans while reducing spending and eligibility for Medicaid and the Supplemental Nutrition Assistance Program (SNAP), likely kicking millions off both programs despite objections from some initial Republican holdouts. Sen. Josh Hawley (R-MO), who ultimately voted for the bill, expressed concerns that “we can’t be cutting health care for working people and for poor people in order to constantly give special tax treatment to corporations and other entities.”
During a period of intense demand for electricity — including from companies like Meta, OpenAI, and other Silicon Valley AI giants — the budget also makes it more difficult for wind and solar companies to receive tax credits. It winds down tax credits for EVs, likely rendering electric options more expensive for car buyers. And it requires the FCC to sell 800MHz of spectrum that will likely be drawn from the 6GHz band, which is currently left free to provide more capacity for Wi-Fi services.
While much of the budget fight concerned Medicaid and the national debt, there were also protracted negotiations over a planned 10-year moratorium on states regulating AI systems. Lawmakers ultimately voted against that rule, which was opposed by not only Democrats but many state-level Republican politicians. An excise tax on wind and solar power companies that couldn’t meet strict requirements barring “material assistance” from certain foreign entities including China was similarly removed, although the bill still deals a serious blow to the renewable energy industry. Congress also scrapped a ban on Medicaid funding for gender-affirming care, though it will deny Medicaid funding to reproductive health care group Planned Parenthood.
This increase will allow Trump to continue an ever-expanding mass deportation program, which has seen masked ICE agents target immigrants in workplaces, courtrooms, and on city streets. The administration has widened its net to catch not only undocumented residents, but people who hold visas or green cards or were granted temporary protected status, as well as naturalized citizens; Trump mused earlier this week that his “next job” could be expelling native-born citizens for crimes like murder and said he would consider deporting his former “First Buddy” Elon Musk. Since the Supreme Court recently denied a nationwide injunction on Trump’s termination of 14th Amendment birthright citizenship, the administration could even target a freshly created class of stateless newborn babies later this month.