economy

Heather Cox Richardson | Letters from an American

May 21, 2025

Just after 1:00 this morning, the House Rules Committee began its hearing on what congressional Republicans have officially named The One Big, Beautiful Bill. If passed, this measure will put Trump’s wish list into law. Although this is technically a budget bill, items in it from that wish list include a significant restriction on “the authority of federal courts to hold government officials in contempt when they violate court orders,” as Dean of Berkeley Law School Erwin Chemerinsky explained in Just Security Monday. “Without the contempt power,” he writes, “judicial orders are meaningless and can be ignored.”

Three judges are currently considering whether the administration is in contempt of court over its apparent disregard for court orders over its rendition of undocumented immigrants to third countries.

But the center of the bill is indeed related to money: it is the $3.8 trillion extension of Trump’s 2017 tax cuts, which disproportionately benefit the wealthy and corporations. Yesterday the nonpartisan Congressional Budget Office said that Americans in the lowest tenth of earners will lose money under the measure while people in the top five percent of earners will see a tax cut of $117.2 billion, more than 20% of the tax cuts in the bill.

Poorer Americans take a hit from the bill because it cuts federal healthcare and food assistance programs to partially offset the costs of the tax cuts. Cuts to Medicaid are expected to leave at least 9 million people without healthcare coverage. Cuts of about 30% to the Supplemental Nutrition Assistance Program would be “the biggest cut in the program’s history,” Ty Jones Cox, vice president for food assistance policy at the Center on Budget and Policy Priorities, told Lorie Konish of CNBC. They would cut about $300 billion from the program through 2034. More than 40 million people, including children, seniors, and adults with disabilities, receive food assistance.

Yesterday the CBO reported that the measure will add $2.3 trillion to the deficit over ten years, and noted that when a budget adds too much to the federal deficit, it triggers cuts to Medicare (not a typo) under the Pay-As-You-Go law. The CBO explains that those cuts are limited by law to 4% but would still total about $490 billion from 2027 through 2034.

Tobias Burns of The Hill summed it up: “Republicans’ tax-and-spending cut bill will take from the poor and give to the rich, Congress’s official scoring body has found.”

Tonight, after 22 hours of debate and after a set of amendments made steeper cuts to Medicaid to woo far-right Republicans, the House Rules Committee agreed to move the bill forward to the House itself. There, Republican leadership intends to push it through as quickly as possible, originally hoping to have the vote over by 6:00 Thursday morning.

In 2025 the Republicans’ signature bill redistributes wealth from the poorest Americans to the richest. Knowing the provisions in the bill will be enormously unpopular, the Republicans have been jamming it through, often in the middle of the night, as quickly as they could.

I have not been able to stop thinking today of the significance of the timing of the Republicans’ push for this bill, and what it says about how dramatically the U.S. has changed in the past 60 years.

On May 22, 1964, in a graduation speech at the University of Michigan, President Lyndon Johnson put a name to a new vision for the United States. He called it “the Great Society” and laid out the vision of a country that did not confine itself to making money, but rather used its post–World War II prosperity to “enrich and elevate our national life.” That Great Society would demand an end to poverty and racial injustice.

But it would do more than that, he promised: it would enable every child to learn and grow, and it would create a society where people would use their leisure time to build and reflect, where cities would not just answer physical needs and the demands of commerce, but would also serve “the desire for beauty and the hunger for community.” It would protect the natural world and would be “a place where men are more concerned with the quality of their goals than the quantity of their goods.”

“But most of all,” he said, it would look forward. “[T]he Great Society is not a safe harbor, a resting place, a final objective, a finished work. It is a challenge constantly renewed, beckoning us toward a destiny where the meaning of our lives matches the marvelous products of our labor.”

Johnson proposed rebuilding the cities, protecting the countryside, and investing in education to set “every young mind…free to scan the farthest reaches of thought and imagination.” He admitted that the government did not have the answers to addressing the problems in the country “But I do promise this,” he said: “We are going to assemble the best thought and the broadest knowledge from all over the world to find those answers for America. I intend to establish working groups to prepare a series of White House conferences and meetings—on the cities, on natural beauty, on the quality of education, and on other emerging challenges. And from these meetings and from this inspiration and from these studies we will begin to set our course toward the Great Society.”

Johnson’s vision of a Great Society came from a very different place than the reworking of society launched by his predecessor, Franklin D. Roosevelt, in the 1930s. Roosevelt’s New Deal had used the federal government to address the greatest economic crisis in U.S. history, leveling the playing field between workers and employers to enable workingmen to support their families. Johnson, in contrast, was operating in a country that was enjoying record growth. Far from simply saving the country, he could afford to direct it toward greater things.

Immediately, the administration turned to addressing issues of civil rights and poverty. Under Johnson’s pressure, Congress passed the Civil Rights Act of 1964 prohibiting voting, employment, or educational discrimination based on race, religion, sex, or national origin. Johnson also won passage of the Economic Opportunity Act of 1964, which created an Office of Economic Opportunity, which would oversee a whole series of antipoverty programs, and of the Food Stamp Act, which helped people who didn’t make a lot of money buy food.

When Republicans ran Arizona senator Barry Goldwater for president in 1964, calling for rolling back business regulation and civil rights to the years before the New Deal, voters who quite liked the new system gave Democrats such a strong majority in Congress that Johnson and the Democrats were able to pass 84 new laws to put the Great Society into place.

They cemented civil rights with the 1965 Voting Rights Act protecting minority voting, created jobs in Appalachia, and established job-training and community development programs. The Elementary and Secondary Education Act of 1965 gave federal aid to public schools and established the Head Start program to provide comprehensive early education for low-income children. The Higher Education Act of 1965 increased federal investment in universities and provided scholarships and low-interest loans to students.

The Social Security Act of 1965 created Medicare, which provided health insurance for Americans over 65, and Medicaid, which helped cover healthcare costs for folks with limited incomes. Congress advanced the war on poverty by increasing welfare payments and subsidizing rent for low-income families.

Congress took on the rights of consumers with new protective legislation that required cigarettes and other dangerous products to carry warning labels, required products to carry labels identifying the manufacturer, and required lenders to disclose the full cost of finance charges in loans. Congress also passed legislation protecting the environment, including the Water Quality Act of 1965 that established federal standards for water quality.

But the government did not simply address poverty. Congress also spoke to Johnson’s aspirations for beauty and purpose when it created the National Foundation on the Arts and Humanities. This law created both the National Endowment for the Arts and the National Endowment for the Humanities to make sure the era’s emphasis on science didn’t endanger the humanities. In 1967 it would also establish the Corporation for Public Broadcasting, followed in 1969 by National Public Radio.

Opponents of this sweeping program picked up 47 seats in the House and three seats in the Senate in the 1966 midterm elections, and U.S. News and World Report wrote that “the big bash” was over. And now, exactly 61 years later, we are seeing Republican lawmakers dismantle the Great Society and replace its vision with the idea that the government must work for the wealthy few.

“For better or worse,” Johnson told the University of Michigan graduates in 1964, “your generation has been appointed by history to deal with those problems and to lead America toward a new age. You have the chance never before afforded to any people in any age. You can help build a society where the demands of morality, and the needs of the spirit, can be realized in the life of the Nation.

“So, will you join in the battle to give every citizen the full equality which God enjoins and the law requires, whatever his belief, or race, or the color of his skin?” he asked.

“Will you join in the battle to give every citizen an escape from the crushing weight of poverty?…”

“There are those timid souls who say this battle cannot be won; that we are condemned to a soulless wealth. I do not agree. We have the power to shape the civilization that we want. But we need your will, your labor, your hearts, if we are to build that kind of society.”