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President Donald Trump said the federal government spends so much money on wars that it can’t afford to fund programs like day care and health care.
“America can’t take care of day care. That’s for the states to decide,” President Trump said at a White House event (1). “We’re at war. We can’t take care of the nursery school.”
He extended that logic to major medical programs.
“Medicaid, Medicare, all these separate things… you can’t do that,” Trump said during the White House Easter lunch (2). “The only thing we have to look out for is military protection. We have to protect our country.”
The remarks come as Republicans consider possible cuts to federal health spending, while the Pentagon is reportedly seeking an additional $200 billion to fund the conflict (3).
President Trump has identified programs such as child care and health care as responsibilities that should be moved from the federal government.
“Day care should be left to the states, and the states should pay for it,” he said, calling some federal programs “small scams” that should be handled locally (2).
Critics like Elizabeth Warren objected to that framework.
“Imagine if instead of funding eternal wars in the Middle East, the United States provided universal child care and health care to all Americans,” Warren writes in X (4).
Elsewhere, Rep. Brendan Boyle warned that proposed spending changes could leave millions more Americans uninsured if cuts are made to programs like Medicaid.
“Now Republicans in Washington want to strip even more people of their health insurance in order to fund Trump’s reckless wars in the Middle East,” Boyle wrote in X (5).
“It’s embarrassing,” he added.
These concerns are not just in the air. According to the American Psychological Association, the cuts would result in 11.8 million people losing health insurance coverage under Medicaid and an additional 3.1 million people losing Medicaid coverage under marketplace plans (6).
Given that American households are known to be strained by the cuts, the bigger question is how households will absorb the costs if public support is reduced.
Read more: I’m almost 50 years old and have no retirement savings. Is it already too late?
The federal government currently spends approximately $9,000 per child per year through programs such as Medicaid, nutritional assistance, and tax credits (7).
Even without immediate policy changes, the direction of the conversation suggests that families will have to incur additional costs in the near future, including:
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Childcare costs can be high, especially if federal aid stalls or shifts to states.
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Increased out-of-pocket health spending, especially for people who rely on programs such as Medicaid
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Rising cost of living, due in part to energy prices related to global instability and conflict
These could hit hard for many middle-income households, especially those balancing child care, health care, and long-term savings.
In fact, the average U.S. family will already be spending about $13,000 per child on child care by 2024, or just over $1,000 per month (8). If support is reduced, even a $300 increase can result in up to $3,600 in additional costs per year.
Add in high insurance premiums and medical costs, and the financial burden can quickly add up.
When expenses become unpredictable, building a financial cushion is often the first step.
High-yield accounts like the Wealthfront Cash Account are a great place to grow your uninvested cash, with competitive interest rates and easy access to your funds when you need them.
The Wealthfront Cash Account currently offers a base APY of 3.30% through the program bank, and new customers receive an additional 0.75% boost on up to $150,000 for the first three months, for a total variable APY of 4.05%.
That’s 10 times the national savings rate, according to a March FDIC report.
Additionally, Wealthfront enables direct deposits into cash accounts (minimum $1,000 per month) and offers new customers who open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit. That means the APY can reach 4.30%.
There are no minimum balances or account fees, and with 24/7 withdrawals and free domestic wire transfers, your funds are always accessible. Additionally, you can qualify for up to $8 million in FDIC insurance through Program Bank.
But while building a cash cushion can help you deal with short-term surprises, it doesn’t address all financial risks.
As responsibility for things like child care, health care, and household finances shifts to individuals, protecting a family’s long-term financial security is just as important as increasing savings, especially in worst-case scenarios.
If you want to protect your family from unexpected expenses after your death, consider purchasing term life insurance from Ethos.
Ethos is rated “Excellent” by Trustpilot and has an A+ rating from the Better Business Bureau (BBB). This platform provides simple and affordable coverage for a fixed period of time, typically 10 to 30 years.
As a licensed third-party insurance administrator, Ethos works with industry-leading insurance companies such as Banner Life, TruStage Financial, and Ameritas Life Insurance.
Ethos offers flexible coverage amounts ranging from $2,000 to $100,000. Premiums start at just $9.80 per month and are guaranteed for the entire term.
No medical exam or blood test required, and you can get coverage online or over the phone in just 10 minutes.
But protecting your family financially is about more than just preparing for the unexpected. It’s also about planning for possible future expenses.
Long-term care is not cheap. On average, a home health aide costs just over $51,000 per year, while nursing home care costs average well over $100,000 per year, depending on the level of care (9). Also, unlike many medical expenses, long-term care beyond a limited short stay is usually not covered by Medicare.
Long-term care insurance covers the cost of in-home assistance, nursing homes, and assisted living facilities.
Without proper planning, paying for long-term care can deplete your retirement savings. In many cases, the burden of nursing care costs falls on the family, which can put pressure on family finances.
GoldenCare offers a variety of options to fit your needs, including hybrid life and annuity insurance with long-term care benefits, short-term care, extended care, home health, assisted living, and traditional long-term care insurance.
Planning for these expenses can make a big difference in protecting your long-term financial security.
As you get closer to retirement, every dollar starts to matter more. Rising medical costs, uncertain markets, and fixed incomes can make it difficult to grow your savings, especially if you’re trying to plan decades ahead.
You might consider joining an organization for seniors like AARP to get discounts on just about everything from prescriptions and dental plans to travel, entertainment, and insurance.
One of the most trusted organizations for older Americans, AARP not only offers money-saving benefits, but also helps you make informed financial and health decisions.
AARP members have access to guides that help you maximize your Social Security benefits, choose the right Medicare plan, and uncover other government benefits, potentially saving you thousands.
Sign up for AARP today and get 25% off your first year.
Whether these changes are effective or not, one thing is becoming harder to ignore. That means the economic burden is shifting even further onto the American people.
As government priorities evolve, some people will have to cover many of the costs associated with child care, health care, and retirement themselves.
Planning now can make a big difference in surviving what comes next.
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@factpostnews (1); @ForbesBreakingNews (2); Reuters (3); @ewarren (4); @CongBoyle (5); American Psychological Association (6); Peter G. Peterson Foundation (7); Parenting for America (8). Federal Long Term Care Insurance Program (9)
This article is for information only and should not be construed as advice. PROVIDED WITHOUT WARRANTY OF ANY KIND.
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