ColoradoHB26-13452026 Regular SessionHouse

Higher Education Funding Allocation Model Changes

Sponsored By: Cleave Simpson (Republican), Eliza Hamrick (Democratic), James Coleman (Democratic), Julie McCluskie (Democratic)

Signed by Governor

Higher Education

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

Colleges retain paths to added funding

Beginning August 1, 2026, the Colorado Commission on Higher Education can recommend ongoing funding above the prior year’s appropriation. Recommendations must advance the state higher-education master plan and broad institutional, systemwide, or state policy goals. They can address historic inequities, area technical colleges’ unique roles, and priorities missing from the funding measures. Approved ongoing additions remain included in later years’ funding calculations, but no dollar amount or institutional increase is guaranteed. Starting in state fiscal year 2027–28, the Department can also make annual fee-for-service contracts with governing boards for higher-education services. Specialty programs and specified technical and local district colleges retain separate funding paths.

College partnerships change graduation funding counts

Beginning August 1, 2026, qualifying co-located degree partnership students are excluded from both the 100% and 150% graduation-time groups used for funding. Two institutions must have a written agreement. Students must start as degree-seeking students at a home college that does not offer their program through completion. They then transfer as degree-seeking students to a partner that does offer the full program. For the agreed period, they must remain mainly at the home campus and receive services there. Ordinary transfer partnerships, articulation pathways, cross-registration, course-sharing, and concurrent or dual enrollment without co-location do not qualify. Programs offered through completion at the home college are also excluded from the partnership definition. The rule prevents double-counting and changes institutional funding measures, not student aid eligibility.

Colleges count transfers and part-time students

Beginning August 1, 2026, qualifying resident transfer students receive equal weight in the credential-completion funding measure. They must earn at least 18 credits at their original college and transfer within the next academic year. Transfers to another institution, an area technical college, or a local district college qualify. The retention measure also includes first-time, part-time undergraduates alongside first-time, full-time students who start in the fall. At four-year colleges, students must return to the same college for the second fall term. At two-year colleges, students seeking an associate degree or undergraduate certificate must return to or complete their declared program there by the second fall term. These rules change college funding calculations, not payments to students.

Colorado changes how colleges share funding

Effective August 1, 2026, Colorado replaces its prior college funding framework with results-informed funding for state budgets starting in 2027–28. The eight measures cover resident full-time-equivalent enrollment, credential completions, retention, graduation within 100% and 150% of expected time, and resident Pell-recipient, underrepresented-minority, and first-generation student shares. The Pell measure counts resident undergraduates who actually receive a federal Pell Grant or successor grant. Its overall resident undergraduate count excludes concurrent enrollment. For each measure, the formula divides the latest four-year average by the average of the oldest three years in that period. It multiplies that result by each governing board’s prior-year funding share, excluding the specified one-time investment amount. Adjusted shares are then scaled to divide the measure’s funding pool without exceeding it. The calculation accounts for changes in total state funding and excludes one-time investments where required. The Commission, Department, and governing boards jointly develop funding-weight recommendations; the Joint Budget Committee makes the final decision. Standard data definitions and reporting are required, and the Department can enforce consistency. Each November 1, the Department and Commission must submit budget recommendations covering total funding changes and each measure’s percentage. The law makes 2027–28 the budget baseline and repeals the former requirement to identify additional student-success measures and graduation-rate adjustment processes. It does not change Pell eligibility, tuition, or direct student payments.

Sponsors & Cosponsors

Cosponsors

Andrew Boesenecker
Democratic • House
Amy Paschal
Democratic • House
Bob Marshall
Democratic • House
Chad Clifford
Democratic • House
Emily Sirota
Democratic • House
Gretchen Rydin
Democratic • House
Jennifer Bacon
Democratic • House
Jamie Jackson
Democratic • House
Junie Joseph
Democratic • House
Jacque Phillips
Democratic • House
Kyle Brown
Democratic • House
Kenny Nguyen
Democratic • House
Katie Stewart
Democratic • House
Lori Goldstein
Democratic • House
Lesley Smith
Democratic • House
Monica Duran
Democratic • House
Meg Froelich
Democratic • House
Mandy Lindsay
Democratic • House
Meghan Lukens
Democratic • House
Matthew Martinez
Democratic • House
Manny Rutinel
Democratic • House
Naquetta Ricks
Democratic • House
Regina English
Democratic • House
Sean Camacho
Democratic • House
Sheila Lieder
Democratic • House
Steven Woodrow
Democratic • House
Tisha Mauro
Democratic • House
Cathy Kipp
Democratic • Senate
Iman Jodeh
Democratic • Senate
Judy Amabile
Democratic • Senate
Jeff Bridges
Democratic • Senate
Julie Gonzales
Democratic • Senate
Lisa Cutter
Democratic • Senate
Matt Ball
Democratic • Senate
Tony Exum
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 200 • No: 46

House vote • 5/12/2026

Senate amendments: Repass

Yes: 51 • No: 13

House vote • 5/12/2026

Senate amendments: Concur

Yes: 43 • No: 21

Senate vote • 5/11/2026

Third reading: Bill

Yes: 32 • No: 3

Senate vote • 5/6/2026

Refer House Bill 26-1345, as amended, to the Committee of the Whole and with a recommendation that it be placed on the consent calendar.

Yes: 7 • No: 0

House vote • 4/30/2026

Third reading: Bill

Yes: 54 • No: 9

House vote • 4/23/2026

Refer House Bill 26-1345 to the Committee of the Whole.

Yes: 13 • No: 0

Actions Timeline

Governor Signed
6/4/2026House
Signed by the Speaker of the House
6/3/2026House
Signed by the President of the Senate
6/3/2026Senate
Sent to the Governor
6/3/2026House
House Considered Senate Amendments - Result was to Concur - Repass
5/12/2026House
Senate Third Reading Passed - No Amendments
5/11/2026Senate
Senate Second Reading Special Order - Passed with Amendments - Committee
5/8/2026Senate
Senate Committee on Education Refer Amended - Consent Calendar to Senate Committee of the Whole
5/6/2026Senate
Introduced In Senate - Assigned to Education
5/1/2026Senate
House Third Reading Passed - No Amendments
4/30/2026House
House Second Reading Special Order - Passed - No Amendments
4/29/2026House
House Second Reading Laid Over Daily - No Amendments
4/28/2026House
House Committee on Education Refer Unamended to House Committee of the Whole
4/23/2026House
Introduced In House - Assigned to Education
3/31/2026House

Bill Text

Engrossed
PDF
Final Act
PDF
Introduced
PDF
Reengrossed
PDF
Rerevised
PDF
Revised
PDF
Senate Education Preamend
PDF
Signed Act
PDF

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