When the president signed an executive order to eliminate a social security benefit program called the Supplemental Security Income program, many Americans were confused.
The president said the benefit program would be eliminated, but not the money that pays for it.
But for some of the roughly 50 million Americans receiving Social Security benefits, the change could mean higher taxes, higher benefits, and higher out-of-pocket costs.
Many Americans are already worried about higher taxes under Trump, who has promised to cut taxes for the wealthiest Americans and has suggested cutting benefits.
Trump also announced a reduction in the number of people receiving Medicare benefits, a program that provides health insurance for the elderly.
Many seniors rely on Social Security and Medicare for health care.
The White House also announced that it is removing the current Social Security tax deduction that is allowed to Americans with income over $200,000.
The deduction is used by wealthier Americans who take advantage of tax deductions that are available to lower-income workers.
The president said this change will allow people to “continue to save and invest for their retirement.”
The tax reform also includes a new, temporary tax credit for Americans who buy a home, and a new tax deduction for businesses who invest in infrastructure projects.
The House of Representatives passed the bill in the Senate last week, but Trump has vowed to veto the measure if it reaches his desk.
In the meantime, House Republicans have been pushing to pass a bill that would extend benefits for more than 7 million Americans.
The GOP-controlled Congress approved the plan on a 217-213 vote on Thursday.
The bill would allow more than 4 million Americans to receive federal benefits, including Social Security, Medicare, Medicaid and food stamps.
The legislation would also extend unemployment benefits for a year.
Trump is expected to sign the bill next week.