🏛️ What is the Impact of the Big Beautiful Bill on Colorado?

The so-called Big Beautiful Bill (BBB) is a sweeping $5 trillion legislative package that reshapes federal spending priorities—from taxes and healthcare to education, immigration, and democratic norms. It represents the largest redistribution of wealth from the poor to the rich in the history of the United States and is expected to add $3.3 trillion to the national debt. Its broad scope and significant shifts in federal priorities—especially temporary relief for individuals vs. permanent cuts for the wealthy and corporations—raise real questions about equity, transparency, and lasting impact on public services and democratic checks. How will it impact Coloradans?

💸 Permanent Tax Cuts for Corporations & High-Income Earners

This bill locks in the Trump-era tax cuts for large corporations and wealthy individuals—indefinitely. While everyday costs rise for working families, the wealthiest keep billions in tax breaks that were originally designed to be short-term to help boost the economy and create jobs. It is a massive giveaway that prioritizes profits over people.

🩺 Medicaid Work Requirements

The bill introduces monthly work-reporting rules that could strip health coverage from nearly a quarter million Coloradans. It forces states to build expensive bureaucratic systems—without providing new funding—just to track paperwork instead of delivering care.

🛒 SNAP Restrictions

Food assistance now hinges on stricter work requirements for older adults and caregivers, making it harder for thousands of Coloradans to keep groceries on the table. Rural Colorado counties in particular will be hit hard given their disproportionately high use of SNAP. It is likely to create food deserts in rural areas where grocers rely on SNAP benefits to provide food to their communities. The burden for ensuring the most vulnerable in Colorado have access to food will shift to state and local agencies that are already facing budget challenges.

🎓 Student Loan Changes

Graduate students will see borrowing capped and federal repayment plans eliminated under this bill—replaced by a new system with higher repayment levels. It restricts educational mobility just as costs soar, making it harder for students from working-class backgrounds to advance. Nearly 773,000 Coloradans have student loans. Borrowers owe an average of $37,400. 

🌍 Clean Energy Rollbacks

The bill wipes out electric vehicle tax credits and solar incentives that Colorado families rely on. It also eliminates funding for rural grid modernization, threatening our state’s clean energy goals and making home upgrades more expensive. 8,000 Colorado jobs in this sector are at risk.

🏥 Rural Health Care

The bill creates a $50 billion Rural Health Transformation Program to offset about 1/3 of Medicaid cuts in rural areas—but only for states that meet strict performance benchmarks. Colorado may benefit, but the rollout is slow, the requirements are steep, and the program ends in 2030. Six Colorado rural hospitals already face financial struggles, and loss of Medicaid funds may force them to reduce services, convert to a different type of health care facility, or close altogether.

💳 Debt Ceiling Raised by $5 Trillion

The bill increases the national debt ceiling by $5 trillion with no oversight requirements—setting the stage for future cuts to core programs while protecting tax breaks for the wealthiest Americans.

⏳ Temporary Tax Breaks That Disappear After 2028

The bill includes flashy tax perks for working families—but they’re short-lived. These benefits sound generous—but they vanish just as the next presidential term ends, leaving families with higher taxes unless Congress acts again.

• No Tax on Tips: Service workers can deduct up to $25,000 in tip income, but only through 2028.

• No Tax on Overtime: Workers can deduct up to $12,500 in overtime pay ($25,000 for couples), also ending in 2028.

• Auto Loan Interest Deduction: Up to $10,000 in interest on new U.S.-assembled vehicles is deductible—but only for loans issued between 2025 and 2028.

Senior Bonus Deduction: Adults 65+ get an extra $6,000 deduction ($12,000 for couples) if their adjusted gross income falls under a limit of $75,000 for individuals or $150,000 for couples, but it phases out by income and expires after 2028.