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President Donald Trump says the federal government is spending so much on war that it can\u2019t afford programs like day care and health care.<\/p>\n
\u201cThe United States can\u2019t take care of day care. That has to be up to a state,\u201d Trump said during a White House event (1). \u201cWe\u2019re fighting wars. We can\u2019t take care of day care.\u201d<\/p>\n
He extended that logic to major health care programs as well.<\/p>\n
\u201cMedicaid, Medicare, all these individual things \u2026 You can\u2019t do it,\u201d Trump said during a White House Easter lunch (2). \u201cWe have to take care of one thing: military protection \u2014 we have to guard the country.\u201d<\/p>\n
The remarks come as Republicans weigh potential cuts to federal health spending, while the Pentagon reportedly seeks an additional $200 billion to bankroll the conflict (3).<\/p>\n
Trump framed programs like child care and health care as responsibilities that should shift away from the federal government.<\/p>\n
\u201cYou\u2019ve got to let a state take care of day care, and they should pay for it too,\u201d he said, calling some federal programs \u201clittle scams\u201d that should be handled locally (2).<\/p>\n
Critics like Elizabeth Warren pushed back on that framing.<\/p>\n
\u201cImagine if instead of funding forever wars in the Middle East, the United States delivered universal child care and health care for all Americans,\u201d Warren wrote on X (4).<\/p>\n
Elsewhere, lawmaker Brendan Boyle warned that proposed spending changes could leave millions more Americans without coverage if cuts to programs like Medicaid move forward.<\/p>\n
\u201cNow, Republicans in Washington want to rip health care away from even more people to fund Trump\u2019s reckless war in the Middle East,\u201d Boyle wrote on X (5).<\/p>\n
\u201cIt\u2019s shameful,\u201d he added.<\/p>\n
These concerns don\u2019t float in a vacuum. According to the American Psychological Association, cuts will result in 11.8 million individuals losing their health insurance coverage under Medicaid, with another 3.1 million losing out on Medicaid under their marketplace plans (6).<\/p>\n
Given that we know American families will be put under pressure by the cuts, the bigger question is how households will absorb those costs if public support shrinks.<\/p>\n
Read More: I\u2019m almost 50 years old and don\u2019t have retirement savings. Is it too late?<\/a><\/p>\n The federal government currently spends about $9,000 per child each year across programs like Medicaid, nutrition assistance and tax credits (7).<\/p>\n Even without any immediate policy changes, the direction of the conversation suggests that families are going to have to take on more costs in the near future, including the following:<\/p>\n higher child care costs, especially if federal support stalls or shifts to states<\/p>\n more out-of-pocket health care spending, particularly for those relying on programs like Medicaid<\/p>\n rising cost of living, driven in part by global instability and energy prices tied to conflict<\/p>\n These are likely to hit many middle-income families hard, especially the households balancing child care, health care and long-term savings simultaneously.<\/p>\n In fact, child care already cost the average U.S. family about $13,000 in 2024 \u2014 or a touch over $1,000 a month \u2014 for one child (8). If support is reduced, even a $300 increase would add up to $3,600 in additional expenses per year.<\/p>\n Add in higher insurance premiums or medical bills, and that financial strain can quickly multiply.<\/p>\n When expenses become less predictable, building a financial cushion is often the first step.<\/p>\n A high-yield account like a Wealthfront Cash Account<\/a> can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.<\/p>\n A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%<\/a>.<\/p>\n That\u2019s ten times the national deposit savings rate, according to the FDIC\u2019s March report.<\/p>\n Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000\/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%<\/a>.<\/p>\n With no minimum balances or account fees, as well as 24\/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks<\/a>.<\/p>\n But while building a cash cushion can help you handle short-term surprises, it doesn\u2019t address every financial risk.<\/p>\n As more responsibility for things like child care, health care and household stability shifts onto individuals, protecting your family\u2019s long-term financial security is just as important as building savings \u2014 especially in a worst-case scenario.<\/p>\n If you want to ensure your family isn\u2019t hit with unexpected costs after your death, consider signing up for term life insurance from Ethos<\/a>.<\/p>\n Ethos is rated \u201cExcellent\u201d on Trustpilot and has an A+ rating from the Better Business Bureau (BBB). The platform offers simple, affordable coverage for a set period \u2014 typically between 10 and 30 years.<\/p>\n As a licensed third-party insurance administrator, Ethos has joined forces with some of the industry\u2019s top carriers, including Banner Life, TruStage Financial and Ameritas Life Insurance.<\/p>\n Ethos gives you the flexibility to select coverage amounts ranging from $2,000 to $100,000. Premiums start at just $9.80 a month and are guaranteed throughout the term.<\/p>\n You can get coverage in just 10 minutes online or by phone<\/a>, with no medical exams or blood tests required.<\/p>\n But protecting your family financially isn\u2019t just about preparing for the unexpected; it\u2019s also about planning for the costs that can come later in life.<\/p>\n Long-term care isn\u2019t cheap. On average, home health aides cost just above $51,000 a year, while nursing home care averages well over $100,000 annually, depending on the level of care (9). And unlike many medical expenses, long-term care is typically not covered by Medicare beyond limited short-term stays.<\/p>\n Long-term care insurance<\/a> offers coverage for the costs of in-home assistance, nursing homes or assisted living facilities.<\/p>\n Without proper planning, paying for long-term care could deplete your retirement fund. In many cases, the burden of paying for care often falls on family members \u2014 potentially straining their finances.<\/p>\n GoldenCare<\/a> offers different options based on your needs, including hybrid life or annuity with long-term care benefits, short-term care, extended care, home health care, assisted living and traditional long-term care insurance.<\/p>\n Planning for these kinds of expenses can make a significant difference in protecting your long-term financial security.<\/p>\n As you get closer to retirement, every dollar starts to matter more. Rising health care costs, uncertain markets and fixed incomes can make it harder to stretch your savings \u2014 especially if you\u2019re trying to plan for decades ahead.<\/p>\n You might want to consider joining senior-focused organizations like AARP<\/a> for discounts on almost everything \u2014 from prescriptions and dental plans to travel, entertainment and insurance.<\/p>\n As one of the most trusted organizations for older Americans, AARP not only offers money-saving perks, but it can also help you make informed financial and health decisions.<\/p>\n AARP members get access to guides that can help you make the most of Social Security<\/a>, choose the right Medicare plan and uncover other government benefits \u2014 potentially saving you thousands.<\/p>\n Sign up with AARP today and get 25% off your first year<\/a>.<\/p>\n Whether or not these changes take effect, one thing is becoming harder to ignore: The financial burden is shifting more into the laps of Americans.<\/p>\n As government priorities evolve, some will be left to cover more of the costs tied to child care, health care and retirement on their own.<\/p>\n Planning now could make all the difference in navigating what comes next.<\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n @factpostnews (1<\/a>); @ForbesBreakingNews (2<\/a>); Reuters (3<\/a>); @ewarren (4<\/a>); @CongBoyle (5<\/a>); American Psychological Association (6<\/a>); Peter G. Peterson Foundation (7<\/a>); Child Care Aware of America (8<\/a>); Federal Long Term Care Insurance Program (9<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. President Donald…\n","protected":false},"author":2,"featured_media":562258,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[59],"tags":[91871,53877,46347,12,97,252,253,1341,3123],"class_list":{"0":"post-562257","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-health-care","8":"tag-american-psychological-association","9":"tag-brendan-boyle","10":"tag-day-care","11":"tag-donald-trump","12":"tag-health","13":"tag-health-care","14":"tag-healthcare","15":"tag-medicaid","16":"tag-white-house"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/562257","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=562257"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/562257\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/562258"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=562257"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=562257"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=562257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}