President, JBC Members Release Statements on Special Session to Address Impacts of GOP’s Federal Budget Bill

DENVER, CO – Senate President James Coleman, Joint Budget Committee (JBC) Chair Jeff Bridges, and JBC Member Judy Amabile today released the following statements on Governor Jared Polis’ call for a special session to address the impacts of Congressional Republicans’ federal budget bill:

Senate President James Coleman, D-Denver:

“By pushing through H.R. 1, Republicans in Washington recklessly slashed programs that Colorado families rely on like Medicaid, food assistance, and children’s health care. These cuts blew a billion dollar hole in this year’s state budget, forcing us to reconvene for a special legislative session. We will do everything we can to minimize the harm, but there’s no avoiding the fact that these cuts threaten core services and will hurt Colorado families. I want every Coloradan to know that we’re fighting for them, listening to experts, and working to maximize every dollar, unlike Congressional Republicans who have handed out tax breaks to the wealthy at the expense of our most vulnerable.”

JBC Chair Jeff Bridges, D-Arapahoe County:

"On July 1 we had a balanced budget, and on July 4 we were down a billion. First, we cut $1.2 billion because of TABOR. Now, we're cutting $1.2 billion because of Trump. Like Yogi Berra said, it's déjà vu all over again. More importantly, every day that goes by makes it harder to fill this massive gap caused by Washington. We must act now and come back to the Capitol to make hard decisions that minimize the impact on Coloradans who depend on having a functioning state government."

JBC Member Judy Amabile, D-Boulder:

“Congressional Republicans’ federal budget has further compounded our state’s budgetary challenges and will force us to make impossible decisions about the future of Medicaid funding in Colorado and our ability to provide core services to hardworking families. Millions of Coloradans rely on Medicaid and safety net programs like SNAP, and the drastic cuts to these programs will have devastating impacts from the Western Slope to the Eastern Plains. As we are set to reconvene for a special legislative session, we will work hard to protect our shared priorities and make cuts that are going to be the least harmful to the most people in our state.”

Over the last week, the Executive Committee of the Legislative Council and the Joint Budget Committee evaluated the devastating impacts of H.R. 1 on Colorado’s state budget. State economists anticipate an over $1 billion hole in the state budget for the current fiscal year that began on July 1, despite having a balanced budget when the legislature adjourned in May.

H.R.1 Devastates Colorado’s State Budget

Preliminary estimates from the Office of State Planning and Budgeting (OSPB) indicate a revenue reduction of $1.2 billion this fiscal year (FY26) and a reduction of $679 million in FY27 and future years. Forecasts estimate the state will be $783 million below the TABOR cap in this fiscal year (FY26), meaning that taxpayers will not receive TABOR refunds and there will not be surplus revenue available to pay for the Senior Homestead Exemption in FY27, creating additional pressures on the state General Fund. Lawmakers already had to address a $1.2 billion deficit during the regular 2025 legislative session, and now face an additional $1.2 billion hole from H.R. 1. 

The GOP budget additionally shifts $170 million in food assistance costs from the federal government onto Colorado, along with hundreds of millions in Medicaid costs as restrictions on provider fee financing phase in. 

Federal Budget Bill Cuts Medicaid, Kicks Coloradans Off Health Insurance, and Raises Premiums

Under H.R. 1, up to 193,000 Coloradans are expected to lose Medicaid health insurance coverage, and many more on the individual market will face higher premiums. Eventually, 377,000 Coloradans will be at risk of disenrollment.

The federal budget slashes provider payments and cuts federal funding for Medicaid, Medicaid Expansion, programs for Coloradans with Disabilities, and CHP+ coverage for children and pregnant women. It also reduces reimbursements to Colorado hospitals. These cuts are expected to cost the state Medicaid program $2.5 billion by 2032.

Due to H.R. 1 and Congressional Republicans’ refusal to extend enhanced premium tax credits for people who purchase health insurance through the Affordable Care Act marketplace, premiums for private health insurance are forecast to go up an average of 28 percent with parts of Colorado, especially on the Western Slope, seeing premium increases of 38 percent. Colorado’s successful, bipartisan reinsurance program will be significantly reduced and as a result, every Coloradan will pay more for their health insurance. Connect for Health Colorado estimates these changes could cost Colorado consumers $620 million from reduced tax credits and lead to a loss of coverage for 112,000 Coloradans.

H.R.1’s Impacts Turn Off EITC and FATC for the Next Two Tax Years

Reduced revenue means that the Earned Income Tax Credit (EITC) expansion and the Family Affordability Tax Credit (FATC) will be turned off for the next two tax years, increasing taxes for working people and families and taking money away from some of the most vulnerable Coloradans. With the EITC expansion and the FATC in effect, an average family with two children under six-years-old and an earned income of $50,000 would have received approximately $4,870 in tax credits. With the programs turned off, Colorado workers and families will receive $0.

Changes to SNAP Will Affect 600,000 Coloradans Who Rely on Food Assistance

H.R. 1 includes significant reductions to the Supplemental Nutrition Assistance Program (SNAP) and shifts the burden to states. Colorado expects to see $170 million in cuts to SNAP, affecting the more than 600,000 Coloradans who rely on SNAP to afford food for themselves and their families. Many participants will lose food assistance or be forced to overcome new administrative hurdles to demonstrate that they meet narrow work requirements. 

Rollback of Clean Energy Will Result in Higher Costs and Job Losses

H.R. 1 rolls back, modifies or completely eliminates tax credits for energy-efficient new homes, residential clean energy and electric vehicles (EVs). An analysis of the final language estimates these policies will result in 1,950 jobs lost and a household income loss of $190 in Colorado, as well as increased energy costs for consumers.

According to the Colorado Energy Office, H.R. 1 is projected to increase residential gas prices in Colorado by 3.4 percent by 2029 and electricity prices by up to 10 percent by 2035. Colorado households could see a $500 increase in annual energy costs by 2035.