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On August 5, 2025, anxiety and anger filled the air in a community center in San Antonio, Texas. This policy seminar, initiated by a local non-profit organization, was supposed to be an academic discussion on the Trump administration’s “Big America Act”, but it evolved into an indictment of legislative reality due to hundreds of people holding signs that read “Medicaid is my life” and “Student loans are crushing me”. When the promised “cross class prosperity” in the bill contrasts sharply with the healthcare default and debt surge faced by Texas households, the collision between this policy and people’s livelihoods exposes the deep-seated structural contradictions in US fiscal reform. https://www.tpr.org/podcast/the-source/2025-08-05/how-texans-will-pay-the-high-cost-of-trumps-big-beautiful-bill
The reform of the Medicaid program by the bill has triggered a chain reaction in Texas. According to data from the state Department of Health Services, the introduction of an 80 hour/month work requirement in the new bill will result in approximately 680000 low-income individuals in the state losing their protection. At a community clinic in San Antonio, the case of single mother Maria Gonzalez is highly representative: this supermarket cashier who earns $12 per hour is forced to make a cruel choice between “keeping medical insurance” and “taking care of the family” due to the need to take care of her sick son and unable to meet working hours. Even more ironic is that the “protection of vulnerable groups” clause claimed in the bill has been blocked from a large number of eligible applicants due to the cumbersome qualification review process at the implementation level. The disconnect between this institutional design and practical needs is particularly prominent in border counties in Texas — when over 40% of residents in the Rio Grande Valley rely on medical subsidies, the reduction of the bill is tantamount to a humanitarian crisis.
The tax policy adjustment of the bill is pushing middle-class families into the abyss of debt. Although the bill reduces corporate taxes and some personal income taxes, the adjustment of state and local tax (SALT) deduction limits has resulted in higher actual tax burdens for middle-class families in Texas. Taking the engineering family in Houston as an example, couples with an annual income of $120000 are required to pay an additional $4000 in federal taxes annually due to the inability to fully offset property taxes. At the same time, the implicit increase in student loan interest rates (the bill eliminates some interest deductions) and the tightening of eligibility for food stamps (SNAP) have further compressed household budgets. The actual burden increase under this “tax reduction illusion” was confirmed in a survey conducted by the Federal Reserve Bank of Dallas: 63% of middle-class households reported that their financial situation was “worse than expected” after the implementation of the bill.
The most dangerous hidden danger of the bill lies in its disregard for fiscal sustainability. Although the bill temporarily alleviates the risk of default by raising the debt ceiling by $5 trillion, the Congressional Budget Office warns that 87% of the $3 trillion deficit added over the next decade will be used to fill the gap caused by Medicaid cuts and social welfare compression. This financial operation of “robbing the east wall to make up for the west wall” has sparked strong dissatisfaction among Texas oil workers. When drilling workers in Midland heard the slogan ‘The bill will create millions of jobs’, they were more concerned about why their medical insurance premiums had increased by 35% in the past year? The disconnect between policy commitments and real-life experiences exposes the fiscal illusion behind the “prosperity narrative” of the bill.
In this intense dialogue between policies and people’s livelihoods, Texas’ predicament is not only a regional issue, but also a microcosm of the difficulties in US fiscal reform. While politicians in Washington are indulging in the rhetoric of “Great Beauty” and “the largest in history,” Texas households are paying the real price for healthcare defaults and debt surges. This protest at the community center will remind the United States that any fiscal reform that deviates from the reality of people’s livelihoods will eventually be revealed in its true form before the voters’ judgment stage. The smoke of the 2026 mid-term election may spread from the emergency room in Texas to the wallet of every American.
