On August 25, 2025, two starkly different visions for the future of American families, health care, and the social safety net collided in statehouses and on Capitol Hill. At the heart of the debate is the One Big Beautiful Bill Act (OBBB), a sweeping federal tax and spending package signed into law by President Donald J. Trump earlier this summer. While supporters tout the law as a historic win for working Americans and economic growth, critics warn of deep cuts to essential programs and the need for urgent state-level action to fill the gaps.
In Tennessee, Senator Marsha Blackburn has become one of the most vocal champions of the OBBB, highlighting what she calls “10 Big Beautiful Wins for Tennesseans.” According to Blackburn, the law delivers an average tax savings of $2,600 for families next year and boosts take-home pay by $10,000—a welcome relief, she says, after years of what she dubs “Bidenflation.” During a recent visit to the Tennessee State Fair in Lebanon, Blackburn recounted conversations with farmers, restaurant servers, and seniors, all of whom she says will benefit from lower taxes and expanded deductions. “The law’s reduction of taxes on tips and overtime will ensure that they keep more of their hard-earned money,” she said, referencing her discussions with local hospitality workers.
The OBBB’s provisions are sweeping. It permanently extends President Trump’s 2017 tax cuts, a move Blackburn argues will protect more than 100,000 jobs in Tennessee. Small business owners, she reports, are already hiring staff, investing in new equipment, and planning for the future thanks to incentives like 100% bonus depreciation and immediate expensing of Research & Development costs. Seniors, meanwhile, will receive a $6,000 bonus deduction, and families can look forward to a $2,200 enhanced child tax credit alongside expanded child care access.
Perhaps nowhere is the bill’s impact more pronounced than in rural communities and among family farmers. Blackburn emphasizes the raised estate tax exemption—$15 million for single filers and $30 million for joint filers—which she says will “empower family farms to pass on their legacy of hard work to the next generation.” Nationwide, she notes, this change will protect two million family farms from what she calls “double taxation.”
The OBBB also makes major investments in national defense, allocating $150 billion in new funding for the military. This includes support for the Golden Dome missile defense system and increased resources for service members’ health care, child care, housing, and education. “For Tennessee’s incredible military communities, this ensures our armed forces remain the strongest lethal fighting force in the world,” Blackburn said.
On the energy front, the legislation reverses what Blackburn calls “anti-America energy policy” from the previous administration, ending regulations she claims drove up gas prices and providing Made-in-America tax breaks to support domestic energy production. Immigration enforcement also receives a boost, with $75 billion set aside to hire thousands of additional ICE agents and complete hundreds of miles of new border wall barriers.
Infrastructure and health care are not left out. The OBBB invests $12.5 billion in the nation’s air traffic control system—timely, as Nashville International Airport saw an all-time high of more than 2.4 million travelers in June 2025. In Tennessee’s 78 rural counties, a new Rural Health Transformation Program will channel $50 billion to strengthen access to rural health care.
But in Colorado, the mood is far less celebratory. There, the OBBB’s deep cuts to social programs have triggered a special legislative session and a scramble to protect vulnerable residents. Colorado lawmakers passed two urgent bills on August 25 to shield access to SNAP (the Supplemental Nutrition Assistance Program) and Planned Parenthood services, both of which were directly affected by the federal law.
“People rely on SNAP for just daily bread,” said Sen. Dafna Michaelson-Jenet, a Democrat from Commerce City and sponsor of the SNAP bill. The OBBB reduced the federal government’s share of SNAP administrative costs from 50% to 25%, leaving Colorado on the hook for an extra $50 million starting next year just to keep the program running at current levels. To cover this gap, Democrats are looking to repurpose revenue from the state’s Healthy School Meals for All program, pending voter approval of two ballot initiatives—Propositions MM and LL—this November. These measures would raise taxes on Coloradans earning more than $300,000 a year and allow the state to retain extra revenue for school meals and, if there’s any left over, SNAP administration and outreach.
“We believe fully that just because you’re living in poverty does not mean that you shouldn’t be able to eat,” said Rep. Lorena Garcia, a Denver Democrat and another sponsor of the bill. If voters approve the changes, the initiatives are projected to raise an additional $95 million, enough to fully fund both free school meals and SNAP, according to bill sponsors.
Administrative workers are bracing for potential fallout if the funding gap isn’t closed. “Processing eligibility and enrollment is very labor-intensive, with very complicated rules and technical requirements,” said Heather O’Hare, Director of the Larimer County Department of Human Services, during testimony last week. “Any reduction in administrative funding will absolutely have a direct impact on the service delivery and the ability of counties to maintain service levels to these vulnerable Coloradans.”
Republicans in Colorado have pushed back, arguing it’s premature to rely on ballot measures that haven’t passed and suggesting the state should find the money by cutting other parts of the budget. “The assumption, potentially that those are going to pass and therefore we should move dollars out of that, is beyond premature,” said Rep. Rick Taggart, a Republican from Grand Junction. “We don’t even know what is coming out of those ballot items. That’s not a good use of our time.”
Alongside the SNAP bill, Colorado lawmakers also passed Senate Bill 25B-002 to ensure Medicaid coverage for patients at Planned Parenthood and similar providers. The OBBB bars federal Medicaid reimbursements to large nonprofit health providers that offer abortions, effectively cutting off funding for Planned Parenthood. Although the provision is currently paused amid legal challenges, Democrats moved to use state Medicaid dollars to reimburse services like cancer screenings, birth control consultations, and STI testing if the federal restriction is upheld.
Jack Teter, Vice President of Government Affairs for Planned Parenthood of the Rocky Mountains, described the chaos caused by the federal law: “Since the Fourth of July, we’ve had to cancel patient appointments, resume them, cancel them again, resume them again. That is not a sustainable way for our patients to be able to access healthcare.” Teter noted that Planned Parenthood of the Rocky Mountains serves more than 10,000 Medicaid patients annually, and he hopes Colorado’s approach will serve as a model for other states.
Republicans argue the state shouldn’t step in to backfill the funding, suggesting other providers could take over. But Rep. Jenny Willford, a Northglenn Democrat and bill sponsor, countered, “Where do they want money to come from? Because you can’t take a provider that has roughly 10,000 Medicaid patients and just expect other providers to pick up those patients. That is a huge stress not only on our continuum of health care, but also on providers and patients.”
While federal law has long barred Medicaid funds from being used for abortion services, Colorado voters recently approved a constitutional amendment allowing state dollars to fund abortion care, giving lawmakers more flexibility to respond to federal changes.
As the OBBB’s effects ripple across the country, the divide between states like Tennessee and Colorado is becoming ever clearer. For some, the law is a lifeline for economic growth and family prosperity; for others, it’s a threat to the most basic social protections. The coming months will reveal which vision prevails—and how Americans will adapt to this new political and economic landscape.
