The U.S. government, like a household, has to figure out how to raise money and how to spend it. The government mainly gets its money from taxes and borrowing. The taxes come from various sources, such as income, payroll, and corporate taxes. If the government doesn’t have enough money from taxes, it borrows by issuing Treasury securities. Then, the government funds various departments and programs.
The process leads to a lot of debate about taxes, how the money is spent, and the national debt.
The current House resolution wants to cut $4.5 trillion in taxes, mostly for the wealthy and corporations. At the same time, it wants to spend more money on things like immigration ($100 billion), Homeland Security ($90 billion), and the military ($100 billion). To make this work in the short term, the plan would raise the debt ceiling by $4 trillion.
The plan to balance the tax cuts includes cutting $2 trillion in spending. This includes cutting $880 billion over 10 years from the part of the budget that covers Medicare and Medicaid, and $230 billion from the part of the budget that covers the Supplemental Nutrition Assistance Program (SNAP), formally known as food stamps.
If approved, Virginia would face:
- $2.7 billion less for Medicaid (a 14% cut)
- $900 million less for public university students (Loans and Pell Grants)
- $273 million less for nutrition programs (a 15% cut to SNAP and Child Nutrition programs)
In addition, if this plan is approved, the federal budget deficit would increase by $173 billion in FY 2026. The spending cuts aren’t enough to cover the proposed tax cuts.
ECS advocates for a budget that supports and cares for all, and helps everyone access the resources they need to live healthy, secure, and fulfilling lives. It’s important that the U.S. budget reflect the needs of everyone, especially vulnerable groups like children, older adults, low-income families, and those with disabilities. A fair budget helps ensure access to essentials like healthcare, education, affordable housing, and nutrition.
Now is the time to speak up. Congressional leadership, the House and Senate, need to work together to decide on a budget.
You can make a difference by:
- Sending a letter to your elected officials. The National Council for Mental Wellbeing has drafted a letter you can customize and send – https://thenationalcouncil.quorum.us/campaign/107658/
- Calling your local legislator: https://www.house.gov/representatives/find-your-representative
Everyone deserves a chance to succeed and contribute to society, and a well-crafted budget can make that possible for all.