As we near the end of May, we at Illuminate Colorado are reflecting on the Colorado State Legislative Session, which commenced on January 14th and concluded on May 13th. This is the only regularly scheduled time of the year that the Colorado General Assembly can introduce, debate, hear, and pass legislation. This year, family strengthening advocates faced many challenges associated with Colorado’s budget crisis, but managed to ensure several wins for Colorado families. We at Illuminate Colorado engaged with legislators, our partners in prevention, and parent advocates to advance our shared vision for all families to thrive.

2026 Colorado State Legislative Session: Budget Challenges and Opportunities

Every year, the Colorado General Assembly, our state-level Representatives and Senators, are tasked with passing legislation that is responsive to the current challenges and opportunities arising from the economic climate, federal funding shifts, laws passed by Congress, and other recent events. This state legislative session, the Colorado General Assembly continued work that began last year as a result of Congress’s passage of H.R.1. This federal legislation presented many funding and systemic challenges for Colorado’s public benefits programs, including SNAP, the health insurance marketplace plans under the Affordable Care Act, and Medicaid(1). 

Due to the impact of H.R.1, inflation, and the limitations TABOR places on the use of tax revenue, the Joint Budget Committee and Colorado General Assembly as a whole were faced with a $1.5 billion budget deficit as they navigated the annual process of balancing Colorado’s state budget(2). Due to the budget deficit, the state legislative session had a focus on exploring opportunities to cut current state spending, reduce current and future impacts to the Colorado budget resulting from H.R.1, and establish creative funding mechanisms to increase and free up revenue to adequately fund Colorado’s many priorities.

Budget Cuts & Impacts to Family Strengthening Programs

Although policy experts and legislators worked together to establish creative funding solutions and reduce the impact of the budget deficit on Colorado children and families, many family strengthening programs were impacted by budget cuts. At Illuminate Colorado, we experienced a direct impact to our Illuminating Child Care program, which saw a 100% reduction in state general funds.

Illuminating Child Care is an innovative approach to increasing access to child care for parents and caregivers who are navigating complex life situations — like mental health concerns, substance use disorders, or employment challenges — as they seek to strengthen their families. While we are disheartened by this funding cut and the resulting impact to the program’s reach, we are grateful to the Joint Budget Committee members who recognized the strength of this program and maintained opportunities to fund it at the state level in future, more promising budget years. In addition, we are grateful to our philanthropic, state agency, and implementing partners who have worked with us closely to try and ensure continued, more limited implementation of Illuminating Child Care.

Unfortunately, many of our state and local partners in prevention also saw budget cuts to vital programs for families. Our partners at Family Resource Centers and Local Public Health Agencies saw cuts in funding within their respective state funding streams(3). Additionally, several state and county implemented programs that strengthen families were also impacted by budget cuts, including vital health programs that serve low income families like Medicaid and Cover All Coloradans (4). In order to reduce costs associated with the Colorado Works program (TANF), cost of living adjustments for basic cash assistance will be paused for two state budget years through HB26-1429.

Celebrating Wins for Colorado Children & Families

While we at Illuminate recognize the deep impact this year’s state budget cuts will have on children and families, we also recognize the importance of celebrating and elevating legislative wins for Colorado children and families. First, we are celebrating maintained funding for the five year state-funded Family Connects Colorado pilot. Family Connects in an evidence-based nurse home visiting program offered to all families with a newborn in participating counties. We are grateful to the Joint Budget Committee and our implementing partners for prioritizing the health and well-being of infants, postpartum mothers, and entire families by ensuring ongoing funding for the program. In addition to this program, the JBC and Colorado General Assembly also prioritized newborns and birthing parents by exempting maternal and neonatal health services from broad Medicaid provider rate cuts(5).

In light of the ongoing challenges resulting from H.R.1 and the TABOR limitations, we are celebrating the passage of HB26-1223. This bill works to ensure ongoing funding for an updated version of the Family Affordability Tax Credit. We are grateful to our partners at Colorado Fiscal Institute, Colorado Center on Law and Policy, and the Colorado Education Association for their leadership on this bill package that promotes financial well-being and independence for low and middle income Colorado families.

Last, but not least, we are celebrating the passage of HB26-1004, which extends the Child Care Contribution Tax Credit (CCTC). This tax credit encourages philanthropic donations to organizations and entities offering child care, resulting in expanded public investment in child care for everyday families. We are grateful to our partners at Executives Partnering to Invest in Children (EPIC) for their continued leadership and commitment to the continued availability and improvement of the CCTC.

Looking Forward

We at Illuminate are looking forward to future opportunities to work alongside policymakers and our partners in prevention to strengthen Colorado families through policy change. During the off session, we will continue to elevate opportunities to maintain and expand investments in family strengthening by engaging our Colorado Congressional Delegates throughout the federal appropriations process. We are also looking forward to continuing the conversation with our policy partners to identify policy concepts to promote better outcomes for families–especially those with newborns and those impacted by substance use.

Keep an eye out in the coming months for more updates, including our much anticipated report with practice & policy recommendations to promote access to child care for families impacted by substance use disorders (SUDs). You can subscribe to Illuminate’s blogs to be sure to receive future policy updates right in your inbox!

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