In Trump’s new budget bill, Latinos pay a hefty price

Periodically, the Latinx Files will feature guest writers. Filling in this week is De Los reporter Andrea Flores.

On Thursday, the GOP-led House approved the Senate’s version of the “Big Beautiful Bill,” the Trump administration’s domestic policy measure — and the measures are as drastic as its mammoth title seems to indicate. Nearly 1,000 pages long, the legislation grants tax cuts to the top 1% of U.S. households at the cost of healthcare, food and utilities, while also expanding spending for border security, defense and energy production.

A look at the possible repercussions for the 65.2 million Latinos in the United States.

Immigration

What is happening: The bill will provide roughly $150 billion for President Trump’s border and national security agenda. This includes $46.5 billion toward the continued construction of the U.S.-Mexico border wall. The budget will also allocate $45 billion for immigration detention centers — which is 62% more than the budget for the entire federal prison system — and could result in daily detention numbers of at least 116,000 noncitizens, according to the American Immigration Council. About $32 billion will go toward immigration enforcement, including for the staffing of Immigration and Customs Enforcement, as well as $7 billion for hiring Border Patrol agents and other officers. More than $3 billion will be allocated to the Justice Department to hire more judges and support staff, addressing a backlog of nearly 4 million pending cases in immigration court.

The passage of the bill was championed by one of the main architects of Trump’s immigration policy.

“The BBB will increase by orders of magnitude the scope, scale and speed of removing illegal and criminal aliens from the United States,” White House Deputy Chief of Staff Stephen Miller boasted on X on Thursday. “For that reason alone, it’s the most essential piece of legislation currently under consideration in the entire Western World, in generations.”

How it might affect Latinos: ICE enforcement and mass sweeps are expected to ramp up under this new legislation, which could affect 1 in 3 Latinos who are at risk for deportation or family separation, according to an analysis by FWD.us. The bill also permits detaining families indefinitely, pending a removal decision.

To help fund the increased spending, the government will also be collecting greater fees from certain noncitizens. For example, those with temporary protected status — which includes about more than 1 million individuals, a majority of whom are from Venezuela, El Salvador and Honduras — will be required to pay $500 for the application, up from $50.

Healthcare

What is happening: To offset some of the tax cuts, the bill will make significant cuts to social services such as Medicaid and Medicare — not to mention defunding Planned Parenthood clinics for up to one year.

Roughly 78 million adults and children are enrolled in Medicaid programs across the country, which benefit low-income individuals, while 24 million people rely on the Affordable Care Act for health insurance. As of June 2024, approximately 6.8 million people in California are enrolled in Medicare, which benefits individuals over the age of 65 and younger adults with disabilities.

Medicaid: The megabill will take about $1 trillion from the joint federal and state program for the next 10 years, making this the largest cut to Medicaid in history. It will also require childless adults and parents of children older than 13 to work, volunteer or attend school for 80 hours a month as a condition for enrollment of Medicaid (unless they qualify for an exemption). Individuals and families will also be required to prove their eligibility twice a year (instead of once) and some states could charge up to a $35 copay for medical services.

Medicare and the ACA: The bill calls for $490 billion in overall cuts to Medicare from 2027 to 2034. It will limit immigrant Medicare coverage for green-card holders and other immigrants, as well as premium tax credits. It applies additional limits for individuals using the Affordable Care Act (also known as Obamacare) marketplace, who will be required to update their income, immigration status and other information each year instead of being reenrolled automatically.

How it might affect Latinos: The Kaiser Family Foundation indicated that Latinos make up 30% of Medicaid enrollees. These new rules are likely to affect most vulnerable groups, including aging foster care youth, veterans and homeless individuals. The Congressional Budget Office estimates that 11.8 million more Americans will become uninsured by 2034, which includes the 1.4 million people without verified citizenship, nationality or satisfactory immigration status.

Food assistance

What is happening: Those between ages 18 and 65 must show proof of work to qualify for the Supplemental Nutrition Assistance Program, or SNAP, unless they have a child under the age of 14 (with few exceptions). The bill will also limit benefits to citizens or lawful permanent residents (with some exceptions).

How it might affect Latinos: Latinos make up 23% of SNAP recipients. The CBO estimates that 3 million people will not qualify for SNAP benefits.

Education

What is happening: The Pell Grant, which is awarded only based on exceptional need, will be reduced by nearly 23% — bringing the annual maximum award from $7,395 to $5,710, starting in fall 2026. Access to student loans for grad students will be trickier; the bill establishes a cap of $100,000 in federal loans for prospective master’s students, and $200,000 for doctoral students, medical and professional degrees. The bill will also limit income-driven repayment options for borrowers, which will probably mean higher monthly payments for individuals juggling other financial necessities.

How it might affect Latinos: According to Excelencia in Education, almost half of all Latino students receive the Pell Grant. Of the Latino students who do take out loans, 18% have defaulted on their student loans, compared with 12% of non-Hispanic white students.

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