Serious Harms Await Working People as Senators Slash Healthcare and Consumer Protections to Boost Billionaires
WASHINGTON – Today, the U.S. Senate passed its Reconciliation Bill, dealing a devastating blow to working class people and low-income communities. The bill passed 51-50 with Vice President Vance casting the tie-breaking vote. If signed into law by President Trump, the bill will eliminate health insurance for millions of people, slash funding for the Consumer Financial Protection Bureau (CFPB), and eviscerate student loan protections.
Cuts to Medicaid and food benefits are projected to increase preventable deaths and quickly expand medical debt. “This bill is nothing short of a disaster. Millions of families will lose insurance coverage, leaving them to face rising medical costs without adequate coverage and pushing them into the ranks of the nearly 100 million people already buckling under the weight of medical debt,” said Jenifer Bosco, senior attorney at the National Consumer Law Center. “Rapidly rising medical debt diminishes the ability of hard working families to pay for other necessities – including housing, food, and medicine – exposes them to predatory debt collectors, and tarnishes their credit reports.”
Cutting the CFPB’s budget by 70%, or more, would gut the nation’s top consumer watchdog and make it easier for banks, payment apps, and other financial companies to break the law and take advantage of ordinary people.
“The Senate’s bill will drastically slash the Consumer Financial Protection Bureau, ending its critical work to protect ordinary people across the country,” said Lauren Saunders, associate director of the National Consumer Law Center. “There is nothing ‘beautiful’ about allowing big banks, fintechs, and other financial service providers to break the law and exploit consumers – including servicemembers, veterans, and their families.”
The bill sharply curtails student loan relief, narrows repayment options, and will make it much harder for students whose school closed or defrauded them. “Pulling back relief options for already overburdened students is bait and switch and just plain cruel,” said Kyra Taylor, staff attorney at the National Consumer Law Center. “Congress should be working to ensure student loan debt doesn’t follow low-income borrowers to the grave.”
Related Resources
Support NCLC
Please support NCLC's work to advance consumer rights and economic justice with a tax-deductible contribution today!
Donate