.png){kind=logo}
DENVER, CO– House Democratic Leadership and JBC Members Shannon Bird and Emily Sirota today released the following statements on Governor Jared Polis’ call for a special session to address the disastrous impacts of Congressional Republicans’ federal budget bill:
“Republicans’ federal budget will both kick Coloradans off their health insurance and make health insurance more expensive for all Coloradans and by nearly 40 percent on the Western Slope, leaving us with no choice but to convene for a special legislative session to address the crisis the GOP has created,” said Speaker Julie McCluskie, D-Dillon. “All Coloradans are now the collateral damage from the GOP’s cruel bill, which will jeopardize services for hardworking families, children, veterans and older Coloradans. We’ll work hard to minimize the fallout on our communities, but that requires us to act now to mitigate the harm this bill has caused our state.”
“Coloradans cannot afford the GOP’s budget, which gives tax breaks to the wealthiest people and corporations at the expense of working families,” said Majority Leader Monica Duran, D-Wheat Ridge. “When Congressional Republicans blew a $1 billion hole in our state budget, they failed our seniors, hard working parents, crime survivors and nearly everyone who relies on community-based services to make ends meet. Democrats will be offering responsible solutions to this budget crisis to help avoid painful cuts to core services people depend on.”
“The GOP’s reckless budget has forced us to hold a special legislative session so we can protect Colorado from the billion-dollar hole Gabe Evans, Jeff Crank, Lauren Boebert and Jeff Hurd have created in our budget,” said JBC Vice Chair Shannon Bird, D-Westminster. “Three months ago, we made over $1 billion in budget cuts and adjourned with a balanced budget; now we’re facing another $1.2 billion deficit. I am deeply concerned by the pain the federal budget will inflict on vulnerable people and the increased costs on families. We are committed to finding responsible solutions, but this billion dollar hole in our state budget will require difficult decisions.”
“The federal budget passed by the GOP Congress increases costs for middle class families, kicks Coloradans off their health insurance, and blows a billion-dollar hole in our state budget in order to give massive tax handouts to the wealthiest people and corporations,” said Rep. Emily Sirota, D-Denver, a member of the JBC. “Make no mistake, the GOP budget is a wealth transfer from the most vulnerable people who are struggling to make ends meet to billionaires. We have a choice to make now: We can continue tax handouts for the very wealthy or we can protect funding for education, public safety and health care for all Coloradans.”
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. 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.
H.R.1 Devastates Colorado’s State Budget
Both Legislative Council economists and the Office of State Planning and Budgeting (OSPB) estimate a revenue reduction of $1.2 billion this fiscal year (FY26), and OSBP estimates 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.
Federal Budget Bill Cuts Medicaid, Kicks Coloradans Off Health Insurance, and Raises Premiums
Congressional Republicans’ refusal to extend enhanced premium tax credits in the federal budget bill for people who purchase health insurance through the Affordable Care Act marketplace, premiums for private health insurance are forecasted 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 every Coloradan will pay more for their health insurance. Over 112,000 Coloradans who purchase their own insurance on the individual market could lose health insurance coverage, and many more will face higher premiums.
Under H.R. 1, up to 193,000 Coloradans are expected to lose Medicaid health insurance coverage. Eventually, 377,000 Coloradans will be at risk of disenrollment from Medicaid.
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.
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 cost 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.