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American Focus > Blog > World News > Colorado officials blast Republican tax bill as Medicaid cuts loom
World News

Colorado officials blast Republican tax bill as Medicaid cuts loom

Last updated: July 1, 2025 8:13 pm
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Colorado officials blast Republican tax bill as Medicaid cuts loom
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Colorado’s Democratic leaders strongly criticized congressional Republicans’ tax bill as a “complete betrayal” on Tuesday following its passage in the U.S. Senate, bringing President Donald Trump’s agenda one step closer to fruition.

The bill is now poised for final approval later this week, although a Colorado Republican congressman has expressed hesitancy about supporting it. Apart from reducing taxes primarily for the wealthy, the bill is also expected to cut Medicaid and food assistance, potentially causing thousands of Coloradans to lose health insurance and placing further strain on the state’s finances and rural health system.

“This bill represents a significant shift of wealth from the working class to the affluent,” remarked U.S. Rep. Jason Crow, a Democrat from Aurora, on social media. “It would result in millions losing their health care, eliminate food assistance for millions, and add trillions to the national debt.”

Following a day-long vote-a-rama, Senate Republicans successfully passed Trump’s “One Big Beautiful Bill” on Tuesday morning, with Vice President JD Vance casting the tie-breaking vote in the chamber, sending the bill back to the House.

The proposal includes $4.5 trillion in tax cuts, making 2017 reductions permanent, enhancing the child tax credit, and introducing deductions for older Americans. However, nonpartisan analysts estimate that it would significantly increase federal deficits by nearly $3.3 trillion over the next decade, funding Trump’s mass-deportation program, cutting Medicaid by nearly $1 trillion, and rolling back clean energy policies and funding.

Gov. Jared Polis’ office warned on Tuesday that the bill would have substantial financial implications for Colorado. Changes to the Supplemental Nutrition Assistance Program (SNAP) could result in up to $200 million in new costs for the state. The implementation of new Medicaid work requirements would cost around $57 million, with Medicaid facing annual losses increasing to as much as $550 million by 2030.

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Projections from congressional Democrats suggest that the Medicaid cuts could lead to the closure of six rural hospitals in Colorado, potentially causing nearly a quarter-million residents to lose health insurance.

In separate statements, U.S. Sen. John Hickenlooper described the bill as “pure lunacy,” while Sen. Michael Bennet criticized it as “a massive step in the wrong direction.” Colorado’s Democratic House Speaker, Julie McCluskie, condemned the bill as a “complete betrayal of the American dream,” alleging that it would “cruelly strip health care from over 100,000 Coloradans and increase costs for working families.”

An analysis by the Institute on Taxation and Economic Policy estimated that Colorado taxpayers would receive total tax cuts exceeding $10.45 billion next year, with over 60% of those savings benefiting individuals earning $168,400 or more annually.

The bill will now move to the House, where it originated, and Republican leaders have expressed a desire to vote on its passage as early as Wednesday. The House margins are expected to be narrow, as the bill previously passed by a 215-214 vote with only Republican support.

‘Significant changes’ required, Hurd states

On Tuesday, one of the Colorado Republicans who previously backed the bill indicated opposition this time around.

“The Big Beautiful Bill returned to the House from the Senate will need significant changes to secure passage,” stated U.S. Rep. Jeff Hurd, representing much of the Western Slope, in a communication to JS. “I am eager to collaborate with leadership and my colleagues to pass a bill that aligns with the promises made during the campaign.”

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When asked about the changes he sought, Nick Bayer, Hurd’s chief of staff, mentioned that Hurd was currently reviewing the proposed modifications. Hurd had previously endorsed a letter urging the Senate to adhere to the House’s Medicaid cuts, which although smaller, still totaled over $800 billion.

In a statement on Tuesday, a spokesman for U.S. Rep. Lauren Boebert, Drew Sexton, mentioned that the congresswoman was reviewing the bill to ensure it aligns with “President Trump’s and the 4th District’s priorities” of tax relief, border security, reforms to Medicaid and food assistance programs, and “eliminating the Green New Scam.”

Messages sent to Colorado’s other Republican representatives, Jeff Crank and Gabe Evans, were not immediately returned on Tuesday. In an op-ed, Evans characterized the bill as “a vision that offers real, tangible benefits to make life safer and more affordable, while also demonstrating responsible stewardship of taxpayer funds.”

The exterior of Delta County Memorial Hospital in Delta, Colo., is seen via Google Maps in this screenshot. Delta Health is facing a shortage of cash, the latest rural hospital in Colorado to face financial hardship. (Screenshot via Google Maps)
The exterior of Delta County Memorial Hospital in Delta, Colo., is seen via Google Maps in this screenshot. The hospital is one of six in Colorado listed in a report as at highest risk from Medicaid cuts. (Screenshot via Google Maps)

The expense of providing the bill’s tax cuts is expected to result in significant cuts to Medicaid and food assistance, programs that offer health care and nutrition benefits to hundreds of thousands of Colorado residents. Earlier estimates from the state’s budget office suggested that the bill in its then-current form could cost Colorado between $900 million and $2.5 billion annually.

“Today, Senate Republicans voted to remove Americans from health care, increase insurance costs, eliminate jobs, raise our deficit and debt, and make it more difficult for children to access food. This disgraceful vote comes at the expense of hardworking Coloradans,” stated Polis in a release on Tuesday.

He, along with McCluskie, urged Colorado’s Republican members of Congress to oppose the bill.

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Evaluating the impact of Medicaid cuts

KFF, a nonpartisan health care research organization previously known as the Kaiser Family Foundation, estimated last month that Colorado could lose approximately $11 billion in federal Medicaid spending over the next decade under the bill. The changes proposed in the bill could result in 155,000 residents losing health coverage by 2034, according to the organization.

Of the reductions, $1.5 billion is expected to impact rural Colorado, leading to 23,000 residents losing Medicaid coverage in those areas, as per KFF.

These estimates were based on the House version of the bill, which suggested less severe Medicaid cuts compared to those adopted by the Senate on Tuesday. Under the Senate version, 11.8 million Americans could lose health care, according to the nonpartisan Congressional Budget Office.

The Colorado Department of Health Care Policy and Financing, responsible for overseeing the Medicaid program in the state, had not yet provided fully updated estimates on the impact of the Senate version on Colorado, as per a spokesperson on Tuesday morning.

“There is nothing beautiful about this bill,” remarked Lydia McCoy, CEO of the Colorado Center on Law and Policy, an advocacy group focused on poverty, in a statement. “Medicaid recipients will lose access to life-saving health care, and hospitals across rural Colorado will be forced to close due to lack of funding. The heartlessness of this legislation is only surpassed by its lack of foresight.”

Stay informed about Colorado Politics by subscribing to our weekly newsletter, The Spot.

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