Trump tax law could cause Medicare cuts if Congress doesn’t act, CBO says

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By STEPHEN GROVES

WASHINGTON (AP) — The federal budget deficits caused by President Donald Trump’s tax and spending law could trigger automatic cuts to Medicare if Congress does not act, the nonpartisan Congressional Budget Office reported Friday.

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The CBO estimates that Medicare, the federal health insurance program for Americans over age 65, could potentially see as much as $491 billion from 2027 to 2034 if Congress does not act to mitigate a 2010 law that forces across-the-board cuts to many federal programs once legislation increases the federal deficit. The latest report from CBO showed how Trump’s signature tax and spending law could put new pressure on federal programs that are bedrocks of the American social safety net.

Trump and Republicans pledged not to cut Medicare as part of the legislation, but the estimated $3.4 trillion that the law adds to the federal deficit over the next decade means that many Medicare programs could still see cuts. In the past, Congress has always acted to mitigate cuts to Medicare and other programs, but it would take some bipartisan cooperation to do so.

Democrats, who requested the analysis from CBO, jumped on the potential cuts.

“Republicans knew their tax breaks for billionaires would force over half a trillion dollars in Medicare cuts — and they did it anyway,” said Rep. Brendan F. Boyle, the top Democrat on the House Budget Committee, in a statement. “American families simply cannot afford Donald Trump’s attacks on Medicare, Medicaid, and Obamacare.”

Hospitals in rural parts of the country are already grappling with cuts to Medicaid, which is available to people with low incomes, and cuts to Medicare could exacerbate their shortfalls.

As Republicans muscled the bill through Congress and are now selling it to voters back home, they have been highly critical of how CBO has analyzed the bill. They have also argued that the tax cuts will spur economic growth and pointed to $50 billion in funding for rural hospitals that was included in the package.

Some workers would be excluded from student loan forgiveness program for ‘illegal’ activity

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By COLLIN BINKLEY

WASHINGTON (AP) — Teachers, social workers, nurses and other public workers would be cut off from a popular student loan cancellation program if the Trump administration finds their employer engaged in activities with a “substantial illegal purpose,” under a new federal proposal released on Friday.

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The Education Department took aim at nonprofits or government bodies that work with immigrants and transgender youth, releasing plans to overhaul the Public Service Loan Forgiveness program. Opponents fear the new policy would turn the loan forgiveness benefit into a tool of political retribution.

The proposal would give the education secretary the final say in deciding whether a group or government entity should be excluded from the program, which was created by Congress in 2007 to encourage more college graduates to enter lower-paying public service fields. The proposal says illegal activity includes the trafficking or “chemical castration” of children, illegal immigration and supporting foreign terrorist organizations. “Chemical castration” is defined as using hormone therapy or drugs that delay puberty — gender-affirming care common for transgender children or teens.

President Donald Trump ordered the changes in March, saying the loan forgiveness program was steering taxpayer money to “activist organizations” that pose a threat to national security and do not serve the public.

The public will be given 30 days to weigh in on the proposal before it can be finalized. Any changes would take effect in July 2026.

Under current rules, government employees and many nonprofit workers can get their federal student loans canceled after they’ve made 10 years of payments. The program is open to government workers, including teachers, firefighters and employees of public hospitals, along with nonprofits that focus on certain areas.

The new proposal would exclude employees of any organization tied to an activity deemed illegal. The Education Department predicts that fewer than 10 organizations would be deemed ineligible per year. It doesn’t expect a “significant reduction” in the percentage of borrowers who would be granted forgiveness under the program, according to the proposal.

Yet the agency acknowledges that not all industries would be affected evenly. Schools, universities, health care providers, social workers and legal services organizations are among those most likely to have their eligibility jeopardized, the department wrote.

It did not give more specifics about what “illegal” actions those groups were taking that could bar them from the program. But the proposal suggests that performing gender-affirming care in the 27 states that outlaw it would be enough.

If a state or federal court rules against an employer, that could lead to its expulsion from the program, or if the employer is involved in a legal settlement that includes an admission of wrongdoing.

Even without a legal finding, however, the education secretary could determine independently that an organization should be ejected. The secretary could judge whether an organization participated in illegal activity by using a legal standard known as the “preponderance of the evidence” — meaning it’s more likely than not that an accusation is true.

Once an organization is barred from the program, its workers’ future loan payments would no longer count toward cancellation. They would have to find work at another eligible employer to keep making progress toward forgiveness. A ban from the Education Department would last 10 years or until the employer completed a “corrective action plan” approved by the secretary.

Critics blasted the proposal as an illegal attempt to weaponize student loan cancellation. Kristin McGuire, CEO of the nonprofit Young Invincibles, which advocates for loan forgiveness, called it a political stunt designed to confuse borrowers.

“By using a distorted and overly broad definition of ‘illegal activities,’ the Trump administration is exploiting the student loan system to attack political opponents,” McGuire said in a statement.

The Education Department sketched out its plans for the overhaul during a federal rulemaking process that began in June. The agency gathered a panel of experts to help hash out the details — a process known as negotiated rulemaking. But the panel failed to reach a consensus, which freed the department to move forward with a proposal of its own design.

The proposal released on Friday included some changes meant to ease concerns raised by the expert panel. Some had worried the department would ban organizations merely for supporting transgender rights, even if they have no direct involvement in gender-affirming care. The new proposal clarifies that the secretary would not expel organizations for exercising their First Amendment rights.

The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

MPR lays off 30 employees Friday following federal, state budget cuts

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Minnesota Public Radio and American Public Media eliminated 30 positions Friday following federal and state budget cuts.

American Public Media Group, the nonprofit parent company of Minnesota Public Radio, announced the impending staff reductions in late July. The St. Paul-based media company said in a statement at the time that it planned to lay off 5% to 8% of its staff “in the coming weeks” and reduce employee benefits as it faces a more than $6 million budget deficit due to federal and state budget cuts.

“Due to reductions in funding from both federal sources and the State of Minnesota, Minnesota Public Radio and American Public Media is facing a budget shortfall of more than $6 million this fiscal year,” said Roycie Eppler, chief people and culture officer with American Public Media Group, in a statement Friday. “While MPR|APM remains financially strong, these cuts required us to make the difficult decision to reduce our workforce by 30 positions — about 6% of staff.”

APMG has a workforce of approximately 500.

Republican majorities in the House and the Senate in July rescinded $1.1 billion in already-approved funding for the Corporation for Public Broadcasting in 2026 and 2027. Those cuts effectively fully defunded the organization that directs federal dollars to National Public Radio, the Public Broadcasting System and some 1,500 local public radio and TV stations around the country, including Minnesota Public Radio.

The Corporation for Public Broadcasting announced in August that it would shut down following the federal cuts.

“We are deeply grateful for the contributions of our departing colleagues and are providing severance and career transition support,” Eppler said. “For nearly 60 years, MPR|APM has delivered trusted news, conversation and music, and we remain committed to serving our audiences and leading public media into the future.”

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Man struck and killed on freeway after fleeing immigration agents, California official says

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MONROVIA, Calif. (AP) — A man fleeing immigration authorities outside a Home Depot store in Southern California was struck and killed by an SUV when he ran across a nearby freeway, officials said.

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Monrovia police received a call Thursday about the presence of U.S. Immigration and Customs Enforcement agents. A responding officer saw ICE agents approaching the store and conducting enforcement activity there, City Manager Dylan Feik said in a statement.

Monrovia is about 20 miles northeast of Los Angeles.

One man fled on foot and headed toward the nearby freeway, where he was struck by a vehicle, Feik said. He was taken to a hospital, where he died, the statement said.

“We extend our condolences for the individual and his family,” Feik said.

The California Highway Patrol said the man was running across the lanes of eastbound Interstate 210 when he was struck by an SUV traveling about 50 or 60 miles (80 or 97 kilometers) per hour.

The man’s name was not immediately released pending the notification of family. The CHP said the crash is under investigation.

Feik said he did not have information about the immigration operation or whether anyone was arrested.

A spokesperson for the U.S. Department of Homeland Security wrote in an email that the agency was not notified of the incident until hours after operations in the area had concluded. “This individual was not being pursued by any DHS law enforcement,” said the spokesperson, who was not named.

The spokesperson did not respond to questions about the operation.

The report is the second of a person being killed in Southern California while fleeing federal immigration enforcement authorities. Last month, a farmworker fell from a greenhouse roof during an immigration raid at a cannabis facility northwest of Los Angeles and died from his injuries.

A vigil was planned for Friday by immigrant advocates, who denounced the widespread raids since President Donald Trump took office this year.

Trump has stepped up enforcement in a crackdown on immigration with raids and a surge in immigration detention. Arrests have been reported at Home Depot stores, car washes, garment factories and other sites across Southern California, stoking widespread fear in immigrant communities.

Last month, a federal court in Southern California temporarily blocked the Trump administration from carrying out indiscriminate sweeps. A hearing on the issue is set for September.

George Lane, a Home Depot spokesperson, said in an email that the company isn’t notified when immigration operations will take place and is not involved in them. Lane deferred questions to ICE.