Speaking as a grad student, there are way too many grad students in this country. That said, ensuring only the rich can become a grad student is not the way to go.
The right-wing has always been about ensuring the protection and preservation of privilege, even at the expense of merit. America's entire educational system, but especially its higher education system, is systematically structured to favor persons with privileged backgrounds. The government's attempts at leveling this field will be seriously harmed by these Republican policies and I don't think that's unintentional.