Trump’s Budget Cuts Medicare and Medicaid, Defunds Public Schools to Pay for Billionaire Tax Handouts
May 2, 2025

In response to Trump unveiling his billionaires > working families budget agenda, DNC Chair Ken Martin released the following statement:
“Donald Trump’s budget tells us exactly who he works for: billionaires and special interests. This budget is a slap in the face to working families, who will pay more and get less in Trump’s America. As costs skyrocket, Trump is cutting Medicare and Medicaid, hollowing out our public schools, and decimating small businesses. This Project 2025 budget won’t help Americans put food on the table or a roof over their head — it will just help Trump ship massive tax handouts over to his billionaire backers.”
NEW: Donald Trump just put forth his disastrous budget that would devastate working families and defund critical programs from health care to public education. Here’s a snapshot of what his budget would do:
- Cut $674 million from the Centers for Medicare and Medicaid Services (CMS) program management
- Cut $4.5 billion from K-12 education
- Cut nearly $2.5 billion in funding for states for clean water infrastructure
- Slash over $26 billion from federal rental assistance programs
- Cut $721 million from USDA’s Rural Development programs, including money for broadband, businesses, and housing loans
- Cut $315 million in preschool development grants, eliminating the program
Trump has launched attacks on affordable health care since Day One, and his budget slashes $674 million from the Centers for Medicare and Medicare Services while threatening critical family planning and preventive health services for nearly 3 million Americans.
Office Of Management And Budget: “Center for Medicare and Medicaid Services (CMS) Program Management … It eliminates health equity-focused activities and Inflation Reduction Act-related outreach and education activities.”
Axios: “Trump admin shrinks federal Medicaid funding available to states”
“The Trump administration is cutting off a key Medicaid financing tool used to help states pay for health care programs it says diverge from the program’s core mission, including high-speed internet for rural health providers.”
STAT: “CMS said federal funding for these programs has grown from $886 million in 2019 to nearly $2.7 billion this year.”
Axios: “The Trump administration wants to roll back Biden-era changes to make signing up for Affordable Care Act marketplace plans easier …
“Between 750,000 and 2 million people will lose their health insurance if all the changes are implemented as proposed, CMS wrote in the rule.”
Office of Management and Budget: “[F]amily planning programs (-$286 million), which use taxpayers funds to nonprofits that are not aligned with several Administration policies.”
OASH: “Title X provided services to 2.8 million clients in 2023, a 7% increase from 2022.
“Title X continued to play a fundamental role in providing affordable family planning and preventive health services nationwide to clients in families with low incomes.”
OASH: “The program awards competitive grants to a diverse, nationwide network of health care organizations, including state health agencies, city and county health departments, freestanding family planning clinics, and nonprofit community-based organizations. In fiscal year 2023, the program received approximately $286.5 million in federal funding—an annual allocation unchanged since 2015.”
After moving to shut down the Department of Education, Trump wants to rip away billions in funding from preschoolers and K-12 students.
The Hill: “Trump signs executive order to dismantle Department of Education”
Office of Management and Budget: “Preserve Title I and Streamline K-12 Programs … -4,535 [in millions] …
“This new, simplified funding structure requires fewer Federal staff and empowers States and districts to make spending decisions based on their needs, consistent with the recent reduction in workforce and Executive Orders. The new approach allows States and districts to focus on the core subjects—math, reading, science, and history—without the distractions of DEI and weaponization from the previous administration.”
Office of Management and Budget: “Preschool Development Grants (PDG) … -315 [in millions] …
“Consistent with the Administration’s priority to return education to the States, which are best equipped to fund and tailor education programs to the needs of their residents, the Budget eliminates PDG.”
Center for American Progress: “[PDG] is the only federal program specifically authorized to increase collaboration and quality across child care, Head Start, state prekindergarten, and home visiting programs, as well as the various state agencies that oversee these programs. PDG B-5 helps ensure that early care and learning systems are as streamlined and efficient as possible, increasing equitable access for all families.”
Trump’s budget calls for cutting nearly $2.5 billion in funding for clean water infrastructure and more than $700 million in rural programs, including money for broadband, businesses, and housing loans.
Office of Management and Budget: “When it comes to water infrastructure, the States should be responsible for funding their own water infrastructure projects.”
Office of Management and Budget: “No new USDA funding is needed for broadband expansion … The Budget would also eliminate programs that are duplicative, too small to have macro-economic impact, costly to deliver, in limited demand, available through the private sector, or conceived as temporary. These include rural business programs, single family housing direct loans, self-help housing grants, telecommunications loans, and rural housing vouchers. Rural Development salaries and expenses are reduced commensurately.”
This disastrous budget agenda will also gut federal rental assistance programs, cutting funding by more than $26 billion.
New York Times: “President Trump’s budget proposes a significant rethink of federal rental assistance programs, consolidating a number of them — and cutting them by more than $26 billion — next fiscal year. Many experts previously told The New York Times that this could result in low-income Americans losing access to federal housing benefits.”
Office of Management and Budget: “The Budget would also newly
institute a two-year cap on rental assistance for able bodied adults”