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. 

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Funds: Federal funds that were frozen or cancelled that have been restored through the courts or the federal government rescinded its decision to withhold funding.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 pending legal action regarding the legality of terms and conditions.  

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. Some funds 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) would cause devastating cuts to the state budget, while removing individuals from health care rolls and basic food assistance programs, and also raise energy costs. The Governor’s Office of State Planning & Budgeting (OSPB) expects an approximate $1 billion ongoing shortfall as a result of H.R. 1 as passed by the House.

Tax provisions in the bill would reduce state tax revenue, driving the state to go below the TABOR cap which would place fiscal pressures on the budget, likely requiring General Fund cuts in the upcoming fiscal year on top of required General Fund payments for the homestead property tax exemption.

Reducing Medicaid funding would result in hundreds of millions 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 would cost the state hundreds of millions of dollars and reduce access to basic food assistance for low-income individuals.

Rollbacks of energy tax credits would increase energy and utility costs for Coloradans and hinder advanced clean manufacturing and renewable energy projects.

Revenue Impacts: OSPB expects $500-600 million less in General Fund revenue per year under the House version of the bill. Four of the bill’s main tax policy areas are shown below alongside OSPB’s expectation of those impacts on TABOR refunds.

Expenditure Impacts: OSPB expects $400-650 million in additional General Fund expenses to support Medicaid and SNAP benefits, per Congressional Budget Office (CBO) estimates of H.R. 1 as passed by the House.

• Medicaid: Costs could increase by up to $350 million. These include:
  New mandatory work requirements for the Medicaid expansion population, which will create administrative costs for both state and local governments. 
  • Cutting federal coverage for Medicaid expansion from 90% to 80% unless states no longer fund programs that are used by undocumented immigrants. This could lead to a federal funding reduction of approximately $300 million.
• SNAP: Costs could increase by up to $300 million.
  Based upon a state’s error rate, the bill would require states to provide a match of at least 5% and up to 25%. Based upon the bill’s formula, Colorado would currently be required to provide a 20% match, costing approximately $250 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 could cost up to $50 million for Colorado

Colorado's Federal Funds Response Timeline