Federal Funding Cuts to Colorado

The Governor of Colorado is dedicated to ensuring that Coloradans are getting their fair share of taxes they pay to the federal government. A recent study shows that for every $1.00 Coloradans pay in federal taxes, they only receive $0.90 in federal investments. And now, the new federal administration has begun an unprecedented cutting of federal programs resulting in Colorado losing ground. Not only are these cuts to vital programs detrimental for Colorado for all, we are losing the investment we have already paid for. 

Protecting the federal dollars that we are owed is a priority for the Polis administration. Federal investments like these support critical programs across our state, from disaster recovery and affordable housing, to clean energy, education, and workforce development. 

Data presented here are verified cuts to state programs. However, these reductions do not include fund freezes, cuts, or clawbacks to institutions of higher education, local, nonprofit, and community partners across Colorado. Information will be updated periodically. For information on the impacts to the University of Colorado System, see the CU Federal Relations website. 

Federal Funding Lost in Colorado

Topline Numbers

For a detailed list of grants and funding sources for the topline numbers, use the link below:

Download Federal Funds Topline Data 

Successfully Defended

Some federal funds that were previously cancelled, suspended, or delayed have been successfully restored through one of the following means:

• Permanently Restored Funds: Federal funds that were frozen or cancelled that have been restored through the courts or the federal government rescinded its decision to withhold funding. 
• Temporarily Restored Funds: Federal dollars that are currently flowing again due to a temporary court order or federal administration actions. While these funds are active for now, a final determination has not been made, and these funds could be paused or cancelled again depending on future actions 
• Conditionally Restored Funds: These are funds that are delayed by new bureaucratic obstacles, but the state was able to satisfy the new requirements and restore the flow of funds. 

At Risk

Funds that are "at risk" support programs that have received communication from the federal government indicating significant changes or terminations but the state does not yet have clarity on whether these changes are legal under federal or state law.

These include:

• Current Work Paused by Federal Orders: In some situations, the federal government has issued "stop work orders" which are directives to state agencies to halt certain projects funded by federal grants. Most of the time, these stop work orders temporarily halt activity without formally ending the grant, but these grants could potentially be terminated in the future. 
• Non-Renewed Awards: Certain state programs that normally receive federal funding annually were suddenly not renewed for the next installment, causing the state to significantly reduce or terminate programs abruptly.  
• Termination Notices: Some programs have received a formal notice that their federal funding will be terminated. In some instances, the state is still determining whether these decisions can be challenged in court. 
• Federal Amendments to Project Scope: In some cases, the federal government has required major changes to how the funds can be used. The state is currently reviewing these proposed changes to ensure it will not violate state or federal laws. 

Cancelled

Cancelled funds refer to federal dollars that are no longer accessible. This includes funding that was officially stopped by the federal government, awards that expired and were not renewed, and funds that had to be withdrawn due to legal action, previous appropriations cancelled by Congress, and additional unfunded mandates and enhanced match requirements. 

• Administrative Cancellations: These previously awarded funds that the federal government revoked and the State was unsuccessful in appealing this decision. 
• Congressional Cancellations: Funds repealed or new State matching fund requirements that were implemented by H.R.1 (otherwise known as the "One Big Beautiful Bill" Act). 

At A Glance

The map below displays federal fund reductions across Colorado, organized by county and congressional districts. Users can click on a specific area to view more information about the total amount of funding reduced and areas most affected. Filters are available to further refine the data as needed. 

The totals on this map are estimated, actual distribution may vary. Estimates are based upon county level location of recipients or the estimated beneficiaries of the services provided by the state (e.g. grants that award acreage by county). For counties that are split between congressional districts, selecting the district on the map to the right will limit the data presented in that county to only the proportion covered by that congressional district. We have additionally added a feature to allow for two options in reviewing split county information between congressional districts: based upon the proportion of a county’s geographic land size in the congressional district or based upon the county’s population share within the congressional district. Some funds/grants may not be fully represented in the geographic distributions, as they could not be allocated to a specific location (e.g. staffing, etc.) As a result, totals presented in the topline data may exceed the sums shown in the geographic breakdowns. 

Reconciliation and Other Immediate Congressional Funding Issues

The reconciliation bill (H.R. 1, otherwise known as the One Big Beautiful Bill Act) will cause an unanticipated revenue shortfall in the State budget and necessitate devastating cuts to many state programs, while also removing individuals from health care rolls and basic food assistance programs, and raising energy costs. The Governor’s Office of State Planning & Budgeting (OSPB) expects an over $1 billion ongoing shortfall this fiscal year as a result of H.R. 1, with out-year impacts likely exceeding a combined $3billion per year in reduced state revenue, increased costs to the state, and decreased federal funding (depending in part on policy decisions in response to the bill impacts). 

Tax provisions in the bill will reduce state tax revenue significantly on an ongoing basis, causing the need for substantial General Fund cuts in the current fiscal year as well as future years. 

Reducing Medicaid funding will result in billions of dollars in cuts to the state budget, cause 100,000+ Coloradans to lose health care coverage, and put significant financial strain on rural hospitals and health providers.

Changes to SNAP will cost the state hundreds of millions of dollars and reduce access to basic food assistance for Coloradans.

Terminations of energy tax credits will increase energy and utility costs for Coloradans, kill jobs, and hinder our state's economic growth.

Revenue Impacts: OSPB is expecting a $1.2 billion drop in General Fund revenue in the current year, and roughly $700 million reduction in Fiscal Years 2027 and 2028, caused primarily by expanded corporate tax breaks in H.R.1. The revenue impacts of various tax provisions in the bill are summarized below: 

_{Note: Some tax policy changes begin in FY2025, but OSPB are not making adjustments to final FY2024-25 accruals given the wide band of uncertainty. Therefore, the estimated FY25 impacts listed instead negatively impact FY 2025-26 revenue, as shown in the totals row above, in millions.} 

For further information, see OSPB's presentation to the legislative Executive Committee on 7/30 regarding tax impacts of H.R.1

Expenditure Impacts: H.R.1 increases expenses by shifting costs from the federal government to the states, starting slowly but growing significantly over time with the impacts of the SNAP state match and the Provider Fee reductions. OSPB expects $50-100 million in additional General Fund expenses in added state costs in the first year, growing to nearly $1 billion in expenses by 2032. When accounting for loss in federal funds due to Medicaid, the impact could be over $3 billion.

• Medicaid & health care impacts: Costs could increase by up to $350 million. These include:
  • Lowers the allowable hospital provider fee rate, which currently finances health coverage for more than 427,000 Coloradans, from 6% to 3.5% over five years. This will reduce federal funding supporting Colorado's health care providers (particularly in rural areas) by $900 million to $2.5 billion annually by Federal Fiscal Year 2032.
  • New mandatory work requirements for the Medicaid expansion population and eligibility reverification every 6 months will create significant bureaucracy and administrative costs for both state and county governments as well as enrollees, and will lead to significant loss of coverage for individuals. The Colorado Department of Health Care Policy & Finance (HCPF) estimates this may cost the state $57 million to implement.
  • For further information, see the Colorado Department of Health Care Policy & Financing's presentation to the legislative Executive Committee on 7/30 regarding Medicaid impacts of H.R.1
  • In addition to the impacts of H.R.1 on Medicaid, the bill's changes to the health insurance exchanges and the failure of Congress to extend the enhanced premium tax credit will result in significantly increased health insurance premiums for Coloradans. The loss of these credits will reduce federal funding by approximately $105 million and lead to an average statewide premium increase of 28%. This increase is expected to cause over 100,000 Coloradans to lose their health coverage.
  • For further information, see the Colorado Division of Insurance's presentation to the legislative Executive Committee on 7/30 regarding insurance impacts of federal actions.
• SNAP: Costs expected to increase by $175 million per year.
  Based upon a state’s error rate, H.R.1 requires states to provide a match of up to 15%. Based upon the bill’s formula, Colorado would currently be required to provide a 10% match, costing approximately $125 million per year. 
  • States would also be required to cover 75% of the costs of administering SNAP vs. the 50% that they cover now, which will add an additional $50 million in required costs for the state budget to cover.
  • For further information, see the Colorado Department of Human Services presentation to the legislative Executive Committee on 7/30 regarding SNAP impacts of H.R.1.
• Clean energy tax credits: H.R.1 modifies, phases out, and/or eliminates the majority of clean energy credits on much earlier timeline than anticipated. These changes are expected to result in 1.6 million jobs lost, $197 billion in lost wages, and $290 billion in lost GDP nationwide, as well as increased costs for American consumers. 
  • Colorado households are anticipated to face about $500 per year in higher electricity prices due to these changes by 2035.
  • For further information, see the Colorado Energy's Office presentation to the legislative Executive Committee on 7/30 regarding clean energy impacts of H.R.1

Colorado's Federal Funds Response Timeline