The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025. Its primary objective is to extend key provisions of the 2017 Tax Cuts and Jobs Act (TCJA), including individual and corporate tax cuts. Beyond tax policy, the bill significantly reshapes federal spending and regulatory frameworks. Cities will likely feel the impact most acutely in four key areas:
- municipal funding, as the federal government shifts financial responsibility to state and local governments;
- environmental impact, with rollbacks to renewable energy tax incentives;
- health care and social safety net reductions, including stricter Medicaid eligibility requirements and cuts to Affordable Care Act subsidies; and
- modifications to opportunity zones (OZs), which alter investment incentives and eligibility criteria.
Brownstein Hyatt Farber Schreck LLP – Douglas J. Friednash, Bart Reising, Daniel Joseph, Greg Sileo and John S. LaLime
August 12 2025