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DENVER, CO – The House today advanced legislation on a preliminary vote to protect Colorado taxpayers and critical state services from funding freezes and federal actions that threaten the Colorado way of life. The Colorado Defense Fund comes in the wake of recent adverse action by the Trump administration, including federal funding freezes, disruptions to essential services, and mass lay-offs.
“This isn’t about Democrats or Republicans; it’s about standing up for Colorado and protecting our taxpayers from federal actions that threaten health care, early childhood education, water infrastructure and public safety,” said Speaker Julie McCluskie, D-Dillon. “Coloradans pay more in federal taxes than we receive back in federal funding. We deserve to have our federal dollars working for us in Colorado – not frozen by unelected billionaires in Washington.”
“We’re taking steps now to protect our state so Coloradans can receive the federal programming and services they rely on and pay for,” said Rep. Shannon Bird, D-Westminster. “When the federal government freezes funding, Colorado taxpayers do not see that return on their investment. Federal funding helps fix our roads and improve access to rural health care, and Colorado needs the federal government to uphold its end of the agreement. This bill fights back against federal overreach and puts Coloradans first.”
The Colorado Defense Fund (HB25-1321) would set aside $4 million to protect our state’s interests from federal efforts to freeze funding, halt contracts, or otherwise disrupt essential services for Coloradans. Coloradans pay more in federal taxes than our state receives back in federal funding, making federal funding freezes even more painful for our taxpayers. The legislation stands up for Colorado, protects Colorado taxpayers’ return on investment, and minimizes the impact of volatile federal actions on our economy and the Colorado way of life.
Under the bill, the governor could use funds to respond to federal action. This includes working to mitigate the impacts of disruptions in federal funding and responding to legal proceedings, inquiries, hearings and investigations initiated or threatened by the federal government. These funds could also be used to defend or protect state officers and employees acting in their official role.
In January, the Trump administration, through the recommendation of Elon Musk’s DOGE, froze more than $570 million in federal funding to Colorado. In response, Colorado joined a 22-state lawsuit to restore federal funding.
While most of the funding has been restored through a federal judge, more than $69 million in public safety grants are still being withheld by the federal government. Colorado’s ability to deliver on essential government services relies on $13.9 billion in federal funding.
Sweeping federal action has caused uncertainty and disruption for Colorado. For example, the federal government recently revoked more than $250 million in federal public and behavioral health care funding and $25.6 million already allocated to address drought in the Colorado River Basin has been paused.