The US administration, led by Vice-President JD Vance, has announced the removal of over 750,000 enrollees from the Affordable Care Act (ACA) health insurance marketplaces. The administration states that these individuals are not entitled to federal subsidies.
This initiative, attributed to Trump's "fraud taskforce," is estimated by the administration to save $2.2bn annually. This figure is significantly less than the projected $4.1tn increase to budget deficits over the next decade from the 2025 One Big Beautiful Bill Act, largely due to tax cuts for affluent Americans.
Treasury Secretary Scott Bessent had previously promised to reduce the budget deficit to 3% of US gross domestic product. However, the budget deficit is now expected to rise to around $2tn in the fiscal year 2026, which is approximately 6% of GDP and an 18% increase from fiscal 2024.