costs

United States President Donald Trump’s signature piece of budget legislation, the “One Big Beautiful Bill”, will likely raise healthcare costs, experts have said. While the Medicaid cuts will directly impact those who depend on the programme, the consequences will extend to others as well.

The 869-page bill, which includes roughly $1 trillion in cuts to Medicaid over the next decade, passed in the House along party lines, with only two Republicans – Representatives Thomas Massie of Kentucky and Brian Fitzpatrick of Pennsylvania – breaking ranks. It will be signed into law by Trump on Friday.

In addition to patients, Medicaid funds also help financially strapped hospitals and other healthcare facilities, and the cuts could lead to their closures.

Apart from this, almost 12 million people could lose health insurance by 2034 due to reductions to both Medicaid and the Affordable Care Act marketplace, according to a Congressional Budget Office analysis.

Experts warn the new law will drive up costs elsewhere in the system. Patients may face higher out-of-pocket expenses, while hospitals could be forced to lower the quality of care, raise prices, or close entirely due to the financial strain.

“There is the mistaken belief that cuts in Medicaid will only affect those on Medicaid. Many hospitals, clinics, and healthcare organisations depend on Medicaid funding for their operations. Therefore, cuts in Medicaid can adversely affect the types and quality of services they provide,” Bruce Y Lee, professor of health policy at the CUNY Graduate School of Public Health and Health Policy, told Al Jazeera.

“In fact, a number of healthcare organisations depend so heavily on Medicaid funding that they could go out of business with significant cuts.”

The cuts would hit rural hospitals hard, according to an analysis from the National Rural Hospital Association (NRHA). About 20 percent of the US population lives in rural areas, where Medicaid covers one in four adults, a higher share than in urban areas, and plays a large part in financing healthcare services.

The cuts are expected to result in a 20 percent reduction in funding for rural hospitals in half of all states.

That will hurt patients like Martha Previte and her partner Jim Earl, who live in rural Maine. Both have type 1 diabetes and rely on regular hospital visits for a range of procedures, including blood tests and kidney treatment.

“I fear that these cuts are going to close hospitals that we rely on to get care, and we’re not going to have anywhere to go,” Previte told Al Jazeera.

This bill could result in as many as 338 hospitals closing around the US. There are already nearly 800 hospitals that are facing financial hardship.

“Our goal is to help ensure hospitals can remain open for their communities, and people can get the care they need when they need it. Our nation’s health and economic future depend on it,” the American Hospital Association said in a statement condemning the bill’s passage and calling it “an extremely disappointing and very difficult day for health care in America”.

Those that stay open could result in cuts to essential care like chemotherapy and behavioural health services.

The bill does include $50bn for rural hospitals to offset the additional financial strain they will face. But because of cuts to Medicaid, that funding will not make enough of a dent to keep healthcare costs from rising and healthcare facilities from shuttering.

Analysis from the Kaiser Family Foundation found that Medicaid cuts would still lead to a drop of $155bn in federal Medicaid spending on rural hospitals over the next 10 years.

“While the President promised to lower costs for Americans, this bill is set to spike premiums and other healthcare costs,” Elizabeth Pancotti, managing director of policy and advocacy at the Groundwork Collaborative, told Al Jazeera.

Rural hospitals in the state of Missouri will be the hardest hit and are expected to lose an average of 29 percent of Medicaid funding. While Missouri’s Senator Josh Hawley, in a May op-ed in the New York Times, said cuts to Medicaid would be “politically suicidal”, he and his fellow Missouri senator, Republican Eric Schmitt, voted in support of the bill before it moved to the House of Representatives on Tuesday.

The cuts are also expected to affect nursing homes disproportionately in urban areas, according to an analysis from Brown University School of Public Health, which forecast that 579 nursing homes could shutter. Those at highest risk have a Medicaid payer share greater than 85 percent. It was found that the Medicaid cuts overwhelmingly affected nursing homes in California, Georgia, Illinois and Texas.

Looming Medicare changes

Medicaid is not the only healthcare programme seeing cuts. While Medicaid is intended for those who are low-income, Medicare covers healthcare for those 65 and older, as well as some others who have disabilities. Some patients, like Previte, receive both.

“Medicare is my primary insurer, and Medicaid picks up what Medicare does not cover. I am a type 1 insulin-dependent diabetic of 41 years with serious complications. Medicare covered my recent hospitalisation and upcoming outpatient procedures,” Previte told Al Jazeera.

The Republican bill could also indirectly lead to cuts in Medicare services because of the statutory Pay‑As‑You‑Go Act of 2010. Under this, the White House’s Office of Management and Budget is required to keep a “scorecard” to track net increases to the deficit, with a goal to “eliminate the overage”.

Because of that, the programme may not get all of the money allocated to it, a potential $490bn loss in access to funds over the next decade, according to the Congressional Budget Office, affecting coverage for people who rely on Medicare.

“The whole thing [the tax bill] is a stark abandonment of human social responsibility,” Previte’s partner Earl said.

Affordable Care Act changes

The upcoming law also makes significant changes to the Affordable Care Act, otherwise known as Obamacare. It shortens the annual enrollment period for healthcare coverage by about a month and drives up premium costs for those who need it.

According to analysis from the Kaiser Family Foundation, insurance premium prices could increase on average by $1,296 a year.

Those who get their healthcare coverage through the exchange will also need to annually update their personal information, which includes income and immigration status, rather than being enrolled automatically.

The changes will cause a strain on the small business economy. Last year, as many as 3.3 million self-employed individuals and small business owners relied on the marketplace for health insurance.

“If you’re a young business owner, already stretched thin by housing costs, child care bills, and health premiums, this bill just made your future harder,” Richard Trent, executive director of Main Street Alliance, an advocacy group for small businesses, said in a statement.

Former President Barack Obama, in a post on X, weighed in as the bill strips parts of his signature policy, a key part of his legacy.

“It will increase costs and hurt working class families for generations to come,” the former president said in a post before the bill’s passage.

“This will be another branch of a limb of a disastrous tree. I’m concerned about what this means for our future care. The thing with diabetes, like many ailments, they’re livable if they’re treated properly. You can live a long, happy, healthy life, but when you’re deprived of healthcare, maintenance-of-health care, and things like that, then a whole Pandora’s box of disasters can happen to your health,” Earl added.

On a Tuesday morning, Kaneng Fom’s* mind told her she was going to die.

The day had begun normally: Kaneng took a short walk down her estate street with her brother, watched her favourite anime, and hoped for an update to the show, before finally getting in the car. Her mother was waiting at the steering wheel to drive her down the road in the Gwarimpa area of Abuja, North Central Nigeria, to get a loaf of bread. The ride was usually smooth for Kaneng, but not that day; the crushing feeling of death and panic consumed her.

That feeling unsettled her mind, tightened her chest, and overwhelmed her breath. Her mother was talking to her in the car, but Kaneng’s anxiety prevented her from truly hearing. She knew how best to describe what was happening; she had learned this phrase online when trying to understand the strange anxiety that randomly overpowers her: a panic attack.

Her mother, however, seeing this for the first time, has different verbiage to handle the condition.

“Jesus!” she yelled.

“She was screaming, ‘Jesus, Jesus,’ until I eventually calmed myself down,” Kaneng recounts. “After she asked me a few questions, she said that I should pray more and if I prayed more or invited the Holy Spirit to go about my day, I would have fewer panic attacks.”

Nigeria is a religious country. About 99.4 per cent of the country’s population is affiliated with a major religion, according to the World Factbook. For those deeply connected to its culture and way of life, like Kaneng’s mother, religion is viewed as a solution to nearly every problem, including mental health challenges.

But while religion offers a source of strength, its dominance also reflects a deeper issue: mental health care in Nigeria is expensive, under-resourced, and often out of reach. As therapy costs rise and stigma remains high, for many Nigerians, then, the default response to psychological distress isn’t clinical but spiritual.

Research by the West African Academy of Public Health shows that many Nigerians like Kaneng are first and solely pushed to seek spiritual sustenance when they face a mental health challenge. 

‘Why worry when you can pray?’

Such was the case for 22-year-old Tolu*, a member of the National Youth Service Corps (NYSC), who identifies with several symptoms from autism, Attention Deficit Hyperactivity Disorder (ADHD), and trauma from sexual assault.

“I come from a very Catholic family, so obviously I believed the church should be my first option,” he said. “I was at a church retreat, and my head just wasn’t clear, so I went to the priest for guidance. I was like (to the priest) ‘I don’t think I’m okay mentally’ and all he told me to do was pray. I didn’t ask him for any particular help, but he didn’t provide any particular help either. ”

A study by researchers at the Department of Religion and Cultural Studies, University of Nigeria, Nsukka in the country’s South East, revealed that some Nigerian religious bodies have positioned themselves as entities capable of curing any struggle, mental illness included. The study explains that this posture, in some cases, allows religious leaders to extort Nigerians who come to them for help. 

Despite estimates from the African Polling Institute suggesting that 20 to 30 per cent of Nigerians may have mental illness, there is a significant lack of care and attention dedicated to addressing their needs. The Association of Psychiatrists in Nigeria (APN) also estimates that only about 300 psychiatrists are tending to mentally ill Nigerians, with only about 4.72 per cent of Nigeria’s total health budget allotted to mental health care. For many, accessing a psychologist can be a painful struggle, and when they do get access, the psychologists often lack proper resources.

In the context of widespread need and inadequate support, spiritual solutions become the more accessible, familiar, and often the only option available.

This “faith-centred healing” approach is echoed by popular religious leaders like Jerry Eze, an evangelist and founder of an Abuja-based Pentecostal ministry, Streams of Joy, who conducts services where the “spirit” of depression or anxiety is cast away on the authority of Jesus. 

During a sermon to thousands of congregation members on June 22, Pastor Jerry described anxiety as something people position themselves in. 

“If I position in fear, my seed (blessings) will be eaten. If I position myself in anxiety, then my seed (blessings) will be eaten,” he claimed during the sermon, giving many a sense of power over something they may feel helpless about. To fix this issue, he insisted his devoted listeners command the spirit of fear away, saying, “It does not matter whether there is change (in your fears) or not, keep commanding!”

When Ruth Anya*, a Streams of Joy member, was asked whether Pastor Jerry encouraged the congregation to seek professional mental health care, she replied, “He doesn’t discourage us, and has even encouraged people to speak to loved ones if they are struggling. But we all know we are at Streams of Joy for our miracles.”

People of other faiths face similar situations, where spiritual explanations are often prioritised before other possibilities are explored. In May, Suhayla Yusuf*, a young Muslim woman, told HumAngle that she had turned to an Islamic platform to share her distress over the intrusive thoughts associated with obsessive-compulsive disorder (OCD), but was simply told the thoughts were from the devil, with no further support offered. OCD has different subtypes, and in Islamic discourse, Suhalya’s experience aligns with what is commonly referred to as waswas, a term that translates to “whisperings of the devil.”

The cost of mental wellness

In 2024, Nigeria’s minimum wage was increased to ₦70,000. While this policy has been slow to implement, the price of therapy and the general cost of living in the country have continued to skyrocket beyond what the average Nigerian makes monthly.

To better understand the cost limitation to seeking mental health support, HumAngle researched and found that a leading psychiatry resource in Nigeria offers therapy sessions that range in price from ₦15,000 to ₦155,000. The cost depends on factors such as your location, the therapist’s qualifications, the type of therapy provided, and whether the session is conducted online or in person. Regardless of the circumstances, many Nigerians may find this cost of a single therapy session unaffordable.

“Therapy is largely inaccessible to the average Nigerian. The cost of treatment, especially private services, remains out of reach for most,” Okwuchukwu Mary-Ann, a clinical psychologist, told HumAngle. 

Her reasoning is backed by data: the World Bank estimates Nigeria’s rural poverty rate is 75.5 per cent. The World Health Organisation has reported that those living in poverty are the most likely to experience mental health issues. Therefore, a ₦15,000 session is far too expensive for the majority of Nigerians who need mental health support.

“Finances pose a big problem for me,” Kaneng noted. “I’ve always been supportive of therapy, but I’ve never been able to afford to go. I would ask my parents, but as I told you, my mother thinks I need to pray more, and my father, our breadwinner, agrees.” When asked if they tried to help her beyond this advice, Kaneng said, ‘My mother prayed whenever I brought it up. That was it.’”

Tolu also faces the same challenge, explaining, “I diagnosed myself through a test sent to me by a friend. A big hindrance towards me getting a formal diagnosis is money.”

Morayo Adesina*, a student at the Pan-Atlantic University in Lagos, South West Nigeria, who tried therapy in 2022, told HumAngle it wasn’t a favourable experience. “It wasn’t easy to find a therapist in Nigeria,” she claimed. “As a student, my only options were the school therapist who may potentially expose my secrets to school authorities, or a therapist gotten through my mother who may potentially expose certain aspects of my worldview to her that I didn’t want her to know about.”

Despite her reservations, Morayo had no choice but to trust her mother’s judgment. This path led her to two therapists, the second of whom she stayed with for some time.

“The second therapist I saw cost around ₦50,000 for the first session, and ₦30,000 for subsequent sessions. That was three years ago, though, and the price today should be over ₦70,000,” she said. 

When asked why she stopped, Morayo responded, “I did about four to five sessions before I started to feel like I was wasting my mum’s money.” 

With a few sessions and over ₦100,000 spent on therapy, Morayo was able to reap some benefits from her sessions with the therapist, who eventually gave her a diagnosis for the persistent pessimism and gloominess she has carried as long as she can remember. 

The verdict was depression, anxiety, and, most importantly, a way for Morayo to feel more at ease with herself; “this diagnosis made me feel more normal because it felt like I could at least tie what was wrong with me to something outside of the feeling that I was probably irredeemably broken.”

However, Morayo doesn’t think the sessions were enough, telling HumAngle that the cost and number of therapy sessions necessary to fix what she thinks is wrong with her come at an expensive price. The American Psychological Association has shown that 15 to 20 therapy sessions are essential to heal 50 per cent of people with mental illness, meaning Morayo’s five sessions only scratched the surface. When people like her, a middle-class student, can’t afford to pay for therapy sessions, the chances of the majority lower class seem far less likely. 

Rashid Usman*, an Arabic and Islamic teacher, agrees that the cost of therapy is too high, but believes surrendering oneself to Allah is the perfect way to avoid mental illnesses. “Mental illness is a condition that affects your thoughts, behaviours and emotions when you are too worried rather than allowing your creator to control your affairs,” he argued, noting that instead of spending money on therapy, it is much cheaper to position God at the heart of your problems. 

“People should be taught how to handle and manage anything that could lead to this problem in the way of God, at the worship centre,” he added. Rashid’s answer explains the reason some look to divinity rather than therapy.

Between stigma and possession

The cost of therapy is a significant barrier for many individuals, but the stigma associated with mental illness also presents a considerable obstacle. When Kaneng was asked about the difficulties of managing a mental illness in Nigeria, she sighed and responded, “It’s truly challenging, and it becomes even more difficult when I can’t express my feelings to my parents or convey my desire to seek therapy. I often feel like an outsider.”

Tolu also experienced the same thing: “It is challenging. You go through things people do not understand, and sometimes you want to explain, but you just dismiss the idea because they will most likely misunderstand your situation.”

Nigerian society has taught people like Tolu and Kaneng that it is better to be silent, whispering the particulars of their mental stress only to God. 

Rashid puts it plainly when asked if he thinks mental illness has a spiritual cause, stating, “Yes, spiritual attack from Jin [demon] can alter mental stability.”

Religious leaders from different faiths preach messages that align with his views. In 2022, Adeola Akinniyi, a pastor at Mountain of Fire and Miracles Ministries, published a sermon titled “The Enemy Called Depression,” in which he described mental illness as a spiritual attack.

“The enemy is using the weapon of depression against believers in the church, manipulating sisters, brothers and everyone. That you have money does not stop the enemy from attacking you with the weapon of depression,” he told his congregants.

Faith and therapy 

In the ongoing conversation about the role of religion in mental health, a question arises: Can communion with God truly lead to complete healing from mental struggles? While Kaneng leans toward a hopeful affirmation, her response reveals a more complex truth.

“I’m not irreligious,” she cuts in quickly. “And I do feel some relief when I pray, but never in the middle of a [panic] attack, and they always come back.  I’ve begun to believe that praying or fasting can’t fix certain things, but they provide relief.”

Mary-Ann highlights the risks of relying solely on religious intervention for mental health issues. “This mindset of only seeking religious help can delay the pursuit of additional support, which may worsen symptoms or lead to chronic problems,” she noted.

Several other medical sources warn that unchecked mental illness can become permanent over time, an issue Kaneng thinks befell her.

“My panic attacks are less intense now that I’ve done research into what they are and I try to manage them,” she said. “But over the last two years, they have become more frequent, and I consider them a part of my daily life.”

There are religious leaders who understand the place of mental healthcare, however. 

Femi Ogunleye*, a youth pastor at the Cathedral Church of Advent in Abuja, believes mental health care is not restricted by God, explaining, “Christianity only discourages sin. Wanting help healthily isn’t a sin.”  

He proposes this dual style of healing: “There are medicines that can help (mental health care), you know, and depending on the type [of medicine]. Some can be resolved by going back to God in prayer and reading the word of God, but there are some that you need mental health care. So the church should promote going to mental health facilities when you have such challenges.”

He is not alone in believing that faith and therapy can coexist. Other Nigerian religious leaders, such as the well-known Apostle Femi Lazarus, have spoken extensively on the subject. In a sermon titled “Issues of Mental Health Need to be Addressed in The Body of Christ”, Lazarus affirms his belief that Christians and Nigerians need to pay better attention to mental health problems, saying, “Many people have mental health issues, and we need to first take them for therapy.” 

In Nigeria’s South South region, a group of Catholic nuns is providing free mental health services to women at risk of homelessness in Uyo and surrounding areas.

Additionally, mental health advocates like Mariam Adetona have found ways to properly combine faith with mental health care. On a muslim-advocacy blog, “Reviving Sisterhood”, Mariam spoke about reaching people who need mental health help, saying, “I have noticed many do not think therapy is necessary or are sceptical about its efficiency or effectiveness. In cases like this, I use my own experience with therapy to persuade them, as well as others’ experiences.”

Still, until therapy becomes truly affordable and stigma fades, many Nigerians will continue to find themselves caught between their faith and their pain, turning first to prayer, even when what they need most is professional care.

Names marked with * have been changed to protect identities.

Casey Pickup, 26, quit her job as a sales manager after feeling ‘unfulfilled’ by life in Britain and booked a one-way flight

A woman fed up with the UK’s “gloomy weather” ditched it to travel the world full time and now lives her “dream” lifestyle in Asia – for ‘half the price’ of a “monotonous British life”. Casey Pickup, 26, gave up her position as a sales manager after feeling “unfulfilled” by life in Britain and took off with a one-way ticket to Thailand.

She has no intentions of coming back and cites being “fed up” with the rain, chilly climate and lifestyle at home as her catalyst for departure. In March 2023, she uploaded a video on TikTok detailing her itinerary to Thailand and Bali and called out for other solo adventurers to join her.

She formed a group chat with seven other young individuals eager to see the globe, and they collectively spent a thrilling six weeks touring Thailand. During these adventures, Casey met her now-partner, Taylor Barker, 26, a marketing professional, and together they’ve since globetrotted across 15 distinct nations.

Globetrotting Casey now earns in excess of £5,000 per month and attests that overseas living is “better” crediting the substantially lower cost of living in Asia compared to the UK.

She boasts a “dream lifestyle” that encompasses living in opulent apartments and villas, dining out each day and indulging in massages and beauty treatments thrice or more weekly – all for a mere £2,000 per month, a figure she said would be double or worse back in the UK.

Casey has sworn off returning to the UK and now bankrolls her globetrotting lifestyle by producing content for brands, who pay her to visit breathtaking spots across the globe.

Content creator Casey, from Chorley, Lancashire, said: “I’ve always loved to travel and whenever I’d come home to rainy England after a holiday, I always felt a bit depressed.

“The main reasons I left the UK is because every day feels the same, it’s dark and it’s gloomy. I used to hate going to work in the dark, and coming home in the dark.

“The lifestyle in the UK just wasn’t very fulfilling. Life in England felt a lot more routine and rushed – like I was always in a cycle of work, grey weather and waiting for the weekend.

“My lifestyle in Asia is so much more fulfilling. I’ve built a life that allows me to wake up by the beach, work on creative projects I care about and explore beautiful places. I feel a sense of freedom that I never felt in the UK.

“Travelling Asia is a no-brainer considering the difference in cost of living – and it’s beautiful. I finally made move to Asia in March 2023 and I’ve never looked back.

“There is no downside, it’s all just been amazing. I love the lifestyle and the sun, I’d never move back.”

Casey was stuck in a rut with her mum, Helen, an artist, back in Lancashire, juggling various “random, boring jobs” such as waitressing, bar work and sales, when she decided to pack up and head to Asia. Having had a taste of adventure working as a holiday rep for Thomas Cook, she yearned to “see the world”, but the puzzle was how to bankroll her wanderlust.

She began crafting promotional videos for big names like Santander and My Protein, quickly realising her income potential had soared to upwards of £5,000 monthly. In March 2023, Casey took off to Thailand with a bunch of mates she’d connected with online, ready to live her Asian travel fantasy.

While settling into Thai life, Casey bagged a two-storey, fully furnished apartment for just £560 a month, sharing the cost with her other half, Taylor. Their setup boasted an infinity pool and gym access.

“It’s so much more affordable to live in Asia,” Casey said. “You could stay in a really beautiful villa or hotel for £10 to £30 a night.

“Local food is roughly £1 or £2 per meal and Western food like pasta or pizza is £4 or £5. The sort of lifestyle that would cost £4,000 or £5,000 a month in Europe is only £2,000 in Asia. And if you’re on more of a budget, you could definitely get by on £1,200 a month.”

Casey has racked up visits to approximately 15 countries in the past two years, taking her adventures through Vietnam, Malaysia, Sri Lanka, Morocco and Central America. She’s driven by the hope that her journey will motivate others to “follow their dreams” of travel and remote work.

As a result, she now regularly shares her tips and recommendations on social media for fellow aspiring digital nomads.

Casey said: “If you’re not happy in your job, go after your dreams. Moving back to the UK is never going to happen.

“If I have children in the future, I’d move to Australia to raise a family. I never thought it would be possible to travel the world full time, but here I am now.

“I am so grateful every day for staying consistent and going after what I really wanted in life. I’m the happiest I’ve ever been.”

Casey’s top destinations

For sun-kissed beaches, head to the Philippines

Surf enthusiasts should catch the waves in Indonesia

Find the most courteous people in Thailand

Casey’s typical costs

Rent – £500 – £1,000 a month, split between two people

Bills – £0 – included in rent

Daily food budget stands at £10

Experiences – gratis for Casey courtesy of GetYourGuide collaborations, but typically cost between £10 – £60

Travel insurance is her only substantial outlay at £60

You can keep up with Casey’s global trotting on Instagram @howtotravelfulltime.

Nike has said it will cut its reliance on production in China for the United States market to mitigate the impact from US tariffs on imports, and forecast a smaller-than-expected drop in first-quarter revenue.

The sportswear giant’s shares zoomed 15 percent at the opening bell on Friday morning after it announced the change in conjunction with its earnings report released on Thursday.

US President Donald Trump’s sweeping tariffs on imports from key trading partners could add about $1bn to Nike’s costs, company executives said on a post-earnings call after the sportswear giant topped estimates for fourth-quarter results.

China, subject to the biggest tariff increases imposed by Trump, accounts for about 16 percent of the shoes Nike imports into the US, Chief Financial Officer Matthew Friend said. However, the company aims to cut the figure to a “high single-digit percentage range” by the end of May 2026 as it reallocates Chinese production to other countries.

“We will optimise our sourcing mix and allocate production differently across countries to mitigate the new cost headwind into the United States,” he said on a call with investors.

Consumer goods are one of the most affected areas by the tariff dispute between the world’s two largest economies, but Nike’s executives said they were focused on cutting the financial pain. Nike will “evaluate” corporate cost reductions to deal with the tariff impact, Friend said. The company has already announced price increases for some products in the US.

“The tariff impact is significant. However, I expect others in the sportswear industry will also raise prices, so Nike may not lose much share in the US,” David Swartz, analyst at Morningstar Research, told the Reuters news agency.

CEO Elliott Hill’s strategy to focus product innovation and marketing around sports is beginning to show some fruit, with the running category returning to growth in the fourth quarter after several quarters of weakness.

Having lost share in the fast-growing running market, Nike has invested heavily in running shoes such as Pegasus and Vomero, while scaling back production of sneakers such as the Air Force 1.

“Running has performed especially strongly for Nike,” said Citi analyst Monique Pollard, adding that new running shoes and sportswear products are expected to offset the declines in Nike’s classic sneaker franchises at wholesale partner stores.

Marketing spending was up 15 percent year on year in the quarter.

On Thursday, Nike hosted an event in which its sponsored athlete Faith Kipyegon attempted to run a mile in under four minutes. Paced by other star athletes in the glitzy event that was livestreamed from a Paris stadium, Kipyegon fell short of the goal but set a new unofficial record.

Nike forecast first-quarter revenue to fall in the mid-single digits, slightly better than analysts’ expectations of a 7.3 percent drop, according to data compiled by LSEG. Its fourth-quarter sales fell 12 percent  to $11.10bn, but still beat estimates of a 14.9 percent drop to $10.72bn.

China continued to be a pain point, with executives saying a turnaround in the country will take time as Nike contends with tougher economic conditions and competition.

Looming trade deal as prices rise

Nike’s woes come as a trade deal with China could be on the horizon. US Treasury Secretary Scott Bessett said on Friday that the administration could have a deal with Beijing by Labor Day, which is on September 1.

Under the deal, the US will likely impose 55 percent tariffs across the board on Chinese goods, down from 145 percent, still a significant burden on businesses.

According to a survey from Allianz Global Trade last month, 38 percent of businesses say they will need to raise prices for consumers, with Nike being the latest.

In April, competitor Adidas said it would need to eventually raise prices for US consumers.

“Cost increases due to higher tariffs will eventually cause price increases,” CEO Bjorn Gulden said at the time.

Walmart said last month that its customers will see higher price tags in its stores as the nation’s biggest big box retailer prepares for back to school shopping season.

Target, which had a bad first quarter driven by boycotts and the looming threat of tariffs, also has been hit as the big box retailer gets 30 percent of its goods from China.

WASHINGTON — The go-broke dates for Medicare and Social Security trust funds have moved up as rising health care costs and new legislation affecting Social Security benefits have contributed to earlier projected depletion dates, according to an annual report released Wednesday.

The go-broke date — or the date at which the programs will no longer have enough funds to pay full benefits — was pushed up to 2033 for Medicare’s hospital insurance trust fund, according to the new report from the programs’ trustees. Last year’s report put the go-broke date at 2036.

Meanwhile, Social Security’s trust funds — which cover old age and disability recipients — will be unable to pay full benefits beginning in 2034, instead of last year’s estimate of 2035. After that point, Social Security would only be able to pay 81% of benefits.

The trustees say the latest findings show the urgency of needed changes to the programs, which have faced dire financial projections for decades. But making changes to the programs has long been politically unpopular, and lawmakers have repeatedly kicked Social Security and Medicare’s troubling math to the next generation.

President Trump and other Republicans have vowed not to make any cuts to Medicare or Social Security, even as they seek to shrink the federal government’s expenditures.

Social Security Administration Commissioner Frank Bisignano, sworn into his role in May, said in a statement that “the financial status of the trust funds remains a top priority for the Trump Administration.”

“Current-law projections indicate that Medicare still faces a substantial financial shortfall that needs to be addressed with further legislation. Such legislation should be enacted sooner rather than later to minimize the impact on beneficiaries, providers, and taxpayers,” the trustees state in the report.

The trustees are made up of six people — the Treasury Secretary serves as managing trustee, alongside the secretaries of Labor, Health and Human Services, and the commissioner of Social Security. Two other presidentially-appointed and Senate-confirmed trustees serve as public representatives, however those roles have been vacant since July 2015.

About 68 million people are enrolled in Medicare, the federal government’s health insurance that covers those 65 and older, as well as people with severe disabilities or illnesses.

Wednesday’s report shows a worsening situation for the Medicare hospital insurance trust fund compared to last year. But the forecasted go-broke date of 2033 is still later than the dates of 2031, 2028 and 2026 predicted just a few years ago.

Once the fund’s reserves become depleted, Medicare would be able to cover only 89% of costs for patients’ hospital visits, hospice care and nursing home stays or home health care that follow hospital visits.

The report said expenses last year for Medicare’s hospital insurance trust fund came in higher than expected.

Income exceeded expenditures by nearly $29 billion last year for the hospital insurance trust fund, the report stated. Trustees expect that surplus to continue through 2027. Deficits then will follow until the fund becomes depleted in 2033.

The report states that the Social Security Social Security Fairness Act, enacted in January, which repealed the Windfall Elimination and Government Pension Offset provisions of the Social Security Act and increased Social Security benefit levels for some workers, had an impact on the depletion date of SSA’s trust funds.

Romina Boccia, a director of Budget and Entitlement Policy at the libertarian CATO Institute called the repeal of the provisions “a political giveaway masquerading as reform. Instead of tackling Social Security’s structural imbalances, Congress chose to increase benefits for a vocal minority—accelerating trust fund insolvency.”

“It’s a clear sign that populist pressure now outweighs fiscal responsibility and economic sanity on both sides of the aisle,” She said.

Pair that with a Republican reconciliation bill that increases tax giveaways while refusing to rein in even the most dubious Medicaid expansions, and the message is unmistakable: Washington is still in giveaway mode.

AARP CEO Myechia Minter-Jordan said “Congress must act to protect and strengthen the Social Security that Americans have earned and paid into throughout their working lives.” “More than 69 million Americans rely on Social Security today and as America’s population ages, the stability of this vital program only becomes more important.”

Social Security benefits were last reformed roughly 40 years ago, when the federal government raised the eligibility age for the program from 65 to 67. The eligibility age has never changed for Medicare, with people eligible for the medical coverage when they turn 65.

Nancy Altman, president of Social Security Works, an advocacy group for the popular public benefit program said in a statement that “there are two options for action: Bringing more money into Social Security, or reducing benefits. Any politician who doesn’t support increasing Social Security’s revenue is, by default, supporting benefit cuts.”

Congressional Budget Office reporting has stated that the biggest drivers of debt rising in relation to GDP are increasing interest costs and spending for Medicare and Social Security. An aging population drives those numbers.

Several legislative proposals have been put forward to address Social Security’s impending insolvency.

Hussein writes for the Associated Press. AP reporters Amanda Seitz and Tom Murphy in Indianapolis contributed to this report.

The city of Los Angeles has racked up nearly $20 million in police costs and other expenses in response to protests that have erupted over federal immigration raids, the city’s top budget analyst said Monday.

City Administrative Officer Matt Szabo said in a memo to the City Council that the city has incurred at least $19.7 million in costs through June 16. The Los Angeles Police Department has spent $16.9 million, including $11.7 million for overtime.

Other costs include $780,601 to repair damage at City Hall, the LAPD’s headquarters on 1st Street, and other city buildings.

Some estimates, excluding the police, run only through June 13 and the tally is expected to increase.

Protesters have held near-daily demonstrations in downtown L.A. since immigration agents raided a fast-fashion warehouse on June 6. Some protests have become violent and police have deployed tear gas canisters and shot less-lethal munitions. The LAPD said Monday that 575 people have been arrested since the demonstrations started.

President Trump has vowed to carry out the biggest mass deportation operation in U.S. history and called on federal agents to detain and deport undocumented people in Los Angeles, Chicago and New York.

The additional costs from the protests will strain L.A.’s already-shaky finances. The city is spending more on legal payouts and labor costs, but bringing in less tax revenues due to a variety of reasons, including a drop in tourism.

During protests in 2020 over the murder of George Floyd by a Minnesota police officer, the LAPD spent $40 million on overtime. Also, police actions related to those protests cost the city at least $11.9 million in settlements and jury awards, according to The Times’ analysis in May.

On Monday, a group representing reporters sued the LAPD in federal court over the department’s treatment of media, arguing constitutional and state rights are being violated.

The suit cites multiple instances of officers firing foam projectiles at members of the media and otherwise flouting state laws that restrict the use of so-called less-lethal weapons in crowd control situations and protect journalists covering the unrest.

Times staff writer Libor Jany contributed reporting.