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Home Politics

How Trump’s Megabill Sets Up Explosive Showdowns

Arjuman Arju by Arjuman Arju
July 8, 2025
in Politics
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How Trump’s Megabill Sets Up Explosive Showdowns

How Trump’s Megabill Sets Up Explosive Showdowns

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In a monumental vote last Thursday, Congress passed President Donald Trump’s sweeping domestic policy package a legislative colossus dubbed the “megabill,” promising immediate tax relief and hardline reforms. But beneath the surface of celebration lies a ticking political and economic timebomb.

The bill may have ended months of negotiation and partisan wrangling, but it simultaneously began a countdown to a series of explosive fiscal and political battles. Set to detonate during the critical 2026 midterm elections and the 2028 presidential race, these policy cliffs from Medicaid cuts to food assistance cost-sharing and the expiration of major tax breaks have already become flashpoints for both parties.

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As Washington breathes a short-lived sigh of relief, lawmakers are quickly waking up to a new reality: the next megabill battle is already looming.

2028: The Year of Reckoning for America’s Safety Net

One of the bill’s most controversial provisions, deep cuts to Medicaid and SNAP (Supplemental Nutrition Assistance Program) has been delayed until 2028, offering political cover to moderates who feared immediate backlash but virtually guaranteeing these issues will dominate future elections.

For instance, the legislation mandates that states gradually reduce their reliance on provider taxes a mechanism used to leverage federal Medicaid funding from 6% to 3.5% starting in 2028. These taxes fund critical health care programs, especially in rural and lower-income states.

Even Republicans who voted for the bill are expressing concern. Missouri Senator Josh Hawley, who fought to delay these cuts, warned, “Unless changes are made … you’re going to see Medicaid reductions in my state. I think that is a huge mistake.”

This Medicaid “cliff” was only softened under intense pressure from moderates, but the reality remains unchanged: if unaltered, states will either need to raise taxes or cut services to fill the funding gap. Lawmakers are betting they’ll have another chance to revisit the provisions before they bite a risky political wager.

SNAP Cost-Sharing Sparks State-Level Firestorm

In addition to Medicaid cuts, the megabill introduces a landmark shift in SNAP funding: states with food aid error rates over 6% will be required to shoulder 5% to 15% of benefit costs. While designed as an accountability measure, it effectively pushes a federal burden onto the states.

The left-leaning Center for Budget and Policy Priorities notes that only one state since 2003 has ever met that threshold meaning nearly every state could soon be on the hook for substantial SNAP costs. Governors, red and blue alike, will feel the heat in 2028 when the rule kicks in. This provision threatens to pit federal cost savings against state-level economic strain and voter outrage.

Tax Cuts on Borrowed Time: Sunset Looming by 2029

The megabill’s temporary tax relief measures including cuts for overtime, tipped wages, and seniors are scheduled to expire in 2029, just one year after the next presidential election. The sunsets are already driving efforts among Republicans and Democrats to make the provisions permanent.

Also under a political microscope is the SALT (State and Local Tax) deduction, a prized break for taxpayers in high-cost blue states. The deduction was raised from $10,000 to $40,000, with an inflation index until 2033. However, Senate Republicans rewrote the final version to limit the larger deduction to just five years, saving $100 billion and ensuring it will again be a campaign issue in 2026 and 2028.

New York Rep. Mike Lawler, one of the deduction’s champions, declared, “It’s the single biggest tax cut in the bill.” Yet, he acknowledged the battle isn’t over. “Of course,” he said when asked if voters would push to preserve the SALT increase after 2029.

Democrats See 2026 and 2028 as Redemption Opportunities

Democratic leaders wasted no time leveraging the bill’s controversial features. House Minority Leader Hakeem Jeffries took to the floor in a scathing speech, calling on vulnerable Republicans to reverse course. Referring to late Sen. John McCain’s pivotal vote against repealing the Affordable Care Act, Jeffries asked, “All we need is four Republicans to show John McCain levels of courage.”

Swing-district Republicans like Reps. John McGuire (VA), Derrick Van Orden (WI), and Ryan Mackenzie (PA) are already facing pressure from constituents over their support for the cuts. Democrats see a potent opportunity to frame the GOP’s domestic agenda as an assault on essential programs for the working class.

Only two Republicans from key battlegrounds Sen. Susan Collins (ME) and Rep. Brian Fitzpatrick (PA) opposed the bill. For the rest, the long shadow of the megabill may hang over their re-election campaigns.

A Ballooning Price Tag and Kicked Cans

While the bill is being celebrated by Trump and his allies for delivering on campaign promises, its financial underpinnings are raising alarms. According to the nonpartisan Committee for a Responsible Federal Budget, the final version adds $1.1 trillion more to the deficit than the original House-passed version.

Senate Finance Chair Mike Crapo (R-ID), architect of the Senate’s tax bill, admitted he preferred making tax cuts permanent but lacked “fiscal room” to do so. “There are terminating provisions, and all I can say is that I prefer not to do that anymore than we have to.”

Senator Kevin Cramer (R-ND) tried to downplay concerns, calling sunsets “common” in legislative packages. But others, like Sen. Mike Rounds (R-SD), acknowledged that each sunset sets up a repeat political fight: “They’ll play the same game … they may have different priorities.”

The Calm Before the Next Legislative Storm

While President Trump’s megabill may mark a legislative triumph in the short term, its delayed provisions all but ensure that the battle over America’s economic future is far from over. The delayed spending cuts and temporary tax breaks are shaping up to be the most explosive political issues of the next two election cycles.

With political fortunes on the line in 2026 and 2028, and trillions of dollars in policy decisions deferred, Washington is once again hurtling toward a future dominated by fiscal cliffs, ideological showdowns, and legislative déjà vu. The megabill may be law, but its most consequential chapters are still to be written.

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