The GOP Budget Law is a Working Families Price Hike
The GOP Budget Law is a Working Families Price Hike
As Republicans continue to run away from facing their constituents, the Trump administration is attempting to rebrand its failing budget law. Regardless of how they spin it, the American people are not buying the GOP’s working families price hike.
In response, Liz Pancotti, Managing Director of Policy & Advocacy at Groundwork Collaborative, released the following statement:
“As their signature legislative achievement, Republicans gave the ultra wealthy another tax giveaway and left hardworking American families holding the bag. No matter what slogan they slap on it, the GOP’s economic agenda is hiking prices for working families on everything from groceries and utilities to healthcare and housing.”
Background on how the GOP budget law will raise costs for working families:
- Grocery bills are rising and food access is at risk: As American families struggle to afford rising grocery prices, Trump and the GOP have cut or outright eliminated food assistance for over 22 million families. As a result, 5.3 million families – including 3.3 million families with children – will lose an average $146 in food assistance per month, or approximately $1,752 per year. As food assistance is cut, more people will turn to food banks, already stretched thin, which will not be able to keep up with the growing demand. At the same time, over 27,000 grocery stores that rely on SNAP spending are at risk. This will lead to store closures, job losses, higher prices, and reduced access to food in many communities, particularly in rural areas.
- Families will pay hundreds more in energy costs per year and miss out on thousands in savings: Households will soon spend an average of $280 more in energy costs per year as a result of the Republican budget law’s repeal of clean energy tax credits, driving more than $50 billion in annual energy expenditure increases. Families in some states could see their energy costs go up by more than $600 per year. Moreover, because Trump and the GOP repealed tax credits that helped families make their homes more energy efficient – like the Energy Efficient Home Improvement Tax Credit and the Residential Clean Energy Tax Credit – families will also miss out on up to $2,240 in energy savings (or 70% of total energy bills) per year.
- Millions of Americans will be kicked off their health care: The Republican budget law cuts Medicaid by over $900 billion – imposing burdensome paperwork requirements on consumers, forcing states to cut Medicaid spending, and lowering quality of care. As a result, more than 14 million Americans will be kicked off their coverage, and 338 rural hospitals and 579 nursing homes throughout the country are at risk of closure.
- Health insurance premiums are skyrocketing: Health insurance companies are increasing premiums for 2026 in the individual market by an average of 18%, citing cost increases including from Trump’s tariffs and GOP changes to the Affordable Care Act (ACA). These price hikes will devastate individual consumers and small businesses: A typical premium for a family of four will rise by roughly $3,400 per year.
- Borrowers will shell out thousands more each year in unnecessary interest payments: On August 1, 2025, the Trump Administration directed student loan servicers to begin charging interest on nearly 8 million borrowers whose loans had been in deferment due to pending litigation. This move will cost borrowers an average of $3,500 more per year – or roughly $300 more per month. The law also eliminated income-based repayment plans, forcing borrowers to spend an additional $2,929 per year in loan payments. Additionally, student loan caps in the Republican budget will force millions seeking graduate and professional degrees from medical, law, and dental programs, to borrow from predatory private lenders to fill the gap – paying higher interest rates with stricter borrowing conditions as a result.
- Americans will lose out on thousands in tax credits and fuel savings for purchasing EVs: The budget law limited the $7,500 tax credit for purchasing a new EV ($4,000 for a used EV). Now, more consumers will miss out on driving an EV, which could have saved them approximately $2,200 in annual savings on fuel expenses.
- Families will also pay more at the pump: After the GOP terminated electric vehicle (EV) affordability programs and stripped existing fuel economy standards of any teeth, the price of gasoline will rise by up to 37 cents per gallon – adding to the already steep national average of $3.14 per gallon.
- Repealing clean energy tax credits threatens American jobs and economic growth: The Republican budget law slashes funding and shortens timelines for clean energy projects backed by IRA tax credits, putting at risk over 760,000 jobs tied to unfinished infrastructure and more than $565 billion in investments promised to local communities.
- At a time when Trump’s policies are making housing more unaffordable, the budget law guts housing incentives and threatens affordable housing programs: The Republican budget law eliminated the energy-efficient home tax credits that saved homeowners thousands in energy bills, supported the construction of 350,000 homes in 2024, and would have supported the construction of 3 million more homes in the coming years. And, Trump’s federal budget request includes a 44% reduction in overall funding for the Department of Housing and Urban Development and a 43% reduction in funding for rental assistance programs. Gutting these programs will lead to severe hardship for the 4.4 million households who receive HUD assistance.
