The Truthiness Behind Trump's Budget

Don't listen to their spin. This is the real impact of Trump's Big Terrible Budget.

In honor of Stephen Colbert, who coined the term “truthiness,” defined as “the belief or assertion that a particular statement is true based on intuition or perception, without regard to evidence, logic, or facts.” It’s hard to think of a better word to describe the Trump Administration’s messaging around the budget bill signed on July 4, 2025.

Let’s break down Trump’s truthiness.

The Real Impact of the Big Beautiful Budget Act

This bill represents the largest transfer of wealth from the working class and poor to the rich in modern U.S. history. It inflicts real and lasting harm on millions of families while narrowing the already shrinking path to financial stability. And while the bill dismantles programs that protect our health, environment, and economic mobility, it invests billions into militarizing the federal government’s inhumane and likely unconstitutional deportation infrastructure.

The Trump Administration knows this bill is unpopular. And they know the more people learn about it, the worse it polls. That’s why they’re launching a coordinated propaganda campaign to distort what’s actually happening.

Let’s break down a few of their biggest claims:

Claim #1: “This bill slashes waste and fraud and brings fiscal discipline back to Washington.”

Reality: Misleading. The bill makes massive cuts to public programs like Medicaid, SNAP, and housing assistance, but these cuts are not based on targeting fraud or waste.

Top line-item cuts:
- $930 billion from Medicaid
- $186 billion from SNAP (food assistance)
- $71 billion from public housing

These programs have among the lowest fraud rates in the federal budget:
- SNAP fraud is under 1.5%
- Medicaid fraud is 5–6%, mostly due to billing errors by providers, not recipient abuse.

Meanwhile, the bill adds $3.3 trillion to the deficit over 10 years, largely due to permanent tax cuts for high-income earners.

This bill cuts services for working families, not government waste.

Claim #2: “The bill delivers historic tax relief for working families.”

Reality: While the bill includes temporary tax reductions for middle-income households, the largest and most permanent tax breaks go to corporations and the top 1%.

According to the Congressional Budget Office (CBO):
- The top 1% of earners receive over 40% of the total tax benefits
- Bottom 60% of households will see a net income decline once benefit cuts are factored in
- The bill also makes the 2017 Trump tax cuts permanent, which disproportionately favor the wealthy

Wealthy Americans benefit most, while working families lose more in services than they gain in tax relief.

Claim #3: “This budget strengthens national security and puts America first.”

Reality: Partially true, but dangerously skewed.

The bill ramps up military and border spending, including:
- A $45 billion increase to ICE and immigration detention
- Tens of billions more to defense contractors
- Expands surveillance programs and detention capacity without legal safeguards

At the same time, it slashes investments in diplomacy and disaster resilience:
- USAID and State Department funding cut by over 30%
- Climate and emergency preparedness programs gutted
- Veterans’ housing and healthcare shortchanged

The bill prioritizes force and surveillance over diplomacy and stability, while undermining actual national resilience.

Lesser-Known Cuts That Still Hurt

• Education: Cuts to public education while expanding subsidies for private and religious schools.

• Reproductive health: Ends funding for reproductive care for low-income people and disqualifies any ACA plan that includes abortion coverage—even if paid for with private dollars—from receiving federal subsidies.

• Public health: Slashes NIH, CDC, and rural health clinic funding.

• Environmental protection: Cuts EPA enforcement by one-third; defunds clean water infrastructure.

• Clean energy: Repeals renewable tax credits, defunds EV charger buildouts and home energy rebates.

• Consumer protection: Guts CFPB and FDA enforcement; deregulates gun silencers; eliminates violence prevention programs.

• Legal access: Eliminates all funding for Legal Aid.

• IRS filing: Cancels the IRS Direct File pilot.

• Transportation: Cuts to Amtrak and public transit.

• Disaster preparedness: Slashes FEMA contingency funds.

When Do the Cuts Hit?

Key provisions, including SNAP and Medicaid cuts, are delayed until after the 2026 midterm elections:

- SNAP cuts begin in FY2027 (October 1, 2026)
- Medicaid reductions phase in gradually between 2027 and 2029

This delay is clearly strategic, avoiding political blowback before the election while locking in long-term harm.

Final Thoughts

The Trump budget isn’t just a fiscal document—it’s a roadmap toward authoritarianism: shrinking public institutions, enriching the wealthy, and expanding enforcement powers that erode democracy.

At MurMur, we’ll keep tracking who benefits (billionaires and corporations) and who gets hurt (everyone else, including the planet). We want to make sure you’re informed, ready to talk, and empowered to act.