Summary
In 2025, a proposed budget plan in the U.S. aims to reduce spending on programs like Medicare, Medicaid, and food assistance, which may leave millions without health insurance or necessary food support. This plan marks one of the biggest cutbacks to social welfare in the U.S. since these programs began. Historically, the U.S. has had limited government intervention in social welfare due to opposition from various business leaders and politicians.
Key Facts
- The new budget plan proposes to cut $930 billion from Medicare and Medicaid over the next ten years.
- Up to 17 million people could be left without health insurance due to these budget cuts.
- The plan would reduce funding for SNAP, a food aid program, potentially affecting around 1 million people.
- The U.S. social welfare system, including Medicare and Medicaid, was started with the Social Security Act of 1935.
- The Social Security Act originally excluded many groups from benefits, including agricultural and domestic workers.
- These measures represent one of the largest reductions in U.S. social welfare programs in nearly 90 years.
- Various U.S. business leaders historically opposed federal social welfare initiatives, fearing they would increase taxes and harm economic productivity.
- Amendments in the 1950s and 1960s aimed to address discrimination and expand social welfare benefits.
