How does the bill achieve over $500 billion in taxpayer savings? 

The Working Families Tax Cuts Act repeals or phases out a range of subsidy programs and tax credits created or expanded in recent years. This includes my priority to phase out tax credits for wind and solar which drove up energy costs and jeopardized grid reliability. 

Many federal programs lack sufficient guardrails and are vulnerable to misuse. Some have funneled taxpayer dollars to wealthy individuals, large corporations, and even foreign adversaries like China. Closing these loopholes and ending wasteful subsidies helps redirect resources toward pro-growth tax relief. 

Is there really evidence of waste and fraud in federal health care programs? 

Yes. Federal audits have identified significant improper payments across Medicaid and Obamacare: 

• The Department of Health and Human Services (HHS) found that nearly $289 million in Medicaid payments were made on behalf of deceased individuals. In one sample, 99 out of 100 payments were issued for individuals who had already died. 
• Federal agencies have also identified 2.8 million duplicative enrollees across Medicaid and Affordable Care Act exchange plans.
• The Congressional Budget Office (CBO) found that Democrat policies have led to at least 2.3 million fraudulent enrollees in Obamacare.
• Federal investigators created fake applicants that were repeatedly approved for Affordable Care Act marketplace plans. Applicants were repeatedly enrolled with no identification or fake ID documents.    

These are just some of the many examples of widespread fraud in federal programs. 

How does the Working Families Tax Cuts Act prevent taxpayer-funded benefits from going to illegal immigrants? 

The legislation strengthens eligibility verification across key tax provisions by requiring a valid Social Security Number (SSN) for claiming certain refundable and nonrefundable tax credits.  

Under this requirement, only individuals who are lawfully present and authorized to work in the United States can access these benefits. This policy closes loopholes that previously allowed individuals using Individual Taxpayer Identification Numbers (ITINs) or insufficient documentation to claim benefits. 

Does this legislation cut Medicaid benefits for people with disabilities, low-income senior citizens, or single moms? 

No. The goal is simple: protect Medicaid for those who truly need it and make sure the program is sustainable for the long term. This legislation strengthens Medicaid, increasing spending by 25 percent over the next ten years. Click here to learn more about common misconceptions regarding Medicaid reforms. 

The legislation requires able-bodied adults without dependents to work, go to school, or volunteer at least 20 hours per week to receive Medicaid benefits. It also cracks down on waste, fraud, and abuse by removing ineligible enrollees, preventing duplicate coverage across states, and stopping payments for individuals who don’t qualify. These smart reforms save nearly $1 trillion over the next 10 years. 

Click here to read more about how these changes strengthen Medicaid and restore its original mission. 

How does the bill help drive down costs of higher education? 

For years, rising tuition has put higher education out of reach for too many families. The Working Families Tax Cuts Act tackles one of the core drivers of that problem by placing reasonable caps on federal student loans. 

Student loans are the federal government’s primary tool in higher education funding. When those loans are unlimited, colleges are free to keep raising prices. Setting a maximum limit on loans helps reduce how much debt students can take on, while encouraging universities to take a harder look at how much they charge.