Just weeks after President Donald Trump promised to send all Americans $5,000 apiece if Republicans retain control of the House and Senate in the midterm elections, 20 million senior adults received unexpected $90 deposits from Medicare.
A White House news release says, “President Trump is the first president to ever use the Medicare Improvement Fund to directly lower costs for senior citizens.”
The givebacks don’t actually lower costs for anything but put cash in the hands of some seniors who are enrolled in Medicare Part B, which pays for doctor visits, outpatient care and preventive screenings. Only one-third of Medicare Part B’s 62.9 million enrollees are eligible.
And the timing of the odd payment drew immediate scrutiny from Trump’s critics — even among those who received the payment.
“Politicizing Medicare by sending checks right before an election is shameful,” Richard Fiesta, executive director at Alliance for Retired Americans, told the Washington Post. “Seniors can see through this hollow ploy.”
Republican legislators largely praised the allocations as a sign of Trump’s good influence, while Democratic legislators accused him of trying to buy votes.
The politics of the allocations are clear-cut, according to the Washington Examiner: “In Texas, home to an intensely competitive Senate seat between Republican state Attorney General Ken Paxton and Democrat James Talarico, at least 1.43 million seniors will receive the $90 check, according to the White House. In Florida, where polls show Democrat David Jolly closing in on Rep. Byron Donalds in the governor’s race, at least 1.4 million seniors will receive the $90 check.”
In August, Trump pledged at his GOP Midterm Convention to give government payouts if Republicans keep control of Congress in November. He reiterated that pledge on Truth Social last Saturday: “If Republicans win the House of Representatives and the Senate in the 2026 Midterm Elections, I’m going to give all Adult Citizens in the United States of America, $5,000.”
Congress has allocated no such funding nor authorized reallocation of any other funds for this purpose. Trump’s pledge was largely viewed as partisan hype before the elections and likely illegal vote buying. What he proposed to do is technically illegal.
However, Trump claimed authority to tap into the Medicare Improvement Fund, a federal reserve established by Congress in 2008 to finance improvements to the original fee-for-service Medicare program. The intent was to support program management, contractor oversight or adjustments to provider and supplier payments.
Contrary to Trump’s claims, health care costs in America have increased rather than decreased during his second term.
Congress has at times clawed back some of those funds to cover other expenses, most notably under the Obama administration, when portions of the fund were reallocated to support Obamacare.
This new initiative from Trump will deplete the fund’s available $2 billion.
Communication from Trump to recipients of the $90 deposits said the gift will “offset some of the cost of your October Medicare premium. The letter also touted Trump’s claims of fighting to lower health care costs and “put patients first.”
Contrary to Trump’s claims, health care costs in America have increased rather than decreased during his second term.
Trump and the Republican-led Congress let tax credits for Affordable Care Act Marketplace plans expire, causing significant premium surges and a drop in Marketplace enrollment. Fewer Americans have health insurance today than when Trump took office 20 months ago.
Also, Medicare Part B premiums increased by more than $200 annually this year, with further increases projected. The $90 rebate does not offset that increase. Likewise, policy changes and budget actions have led to millions of losses across Medicaid and ACA programs.
Also, largely due to the Trump-initiated war with Iran, U.S. gasoline prices have risen to record highs, along with prices for staples such as groceries. Not only that, but Trump’s aggressive immigrant deportation agenda has contributed to the price of fruits and vegetables increasing nearly 5% since he retook office.