The Deficit Reduction Act is a U.S. law enacted in 2005 aimed at reducing the federal budget deficit. It includes various measures to cut spending and increase revenue, focusing on areas like healthcare, education, and welfare. The act seeks to improve the efficiency of government programs while ensuring that essential services remain available to the public. One significant aspect of the act is its impact on the Medicaid program, which provides healthcare to low-income individuals. The law introduced reforms to control costs and improve the program's sustainability, ultimately aiming to balance the federal budget over time.