ColoradoSB25-3122025 Regular SessionSenate

American Rescue Plan Act Funds

Sponsored By: Barbara Kirkmeyer (Republican), Emily Sirota (Democratic), Judy Amabile (Democratic), Shannon Bird

Signed by Governor

State GovernmentState Revenue & Budget

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Bill Overview

Analyzed Economic Effects

28 provisions identified: 13 benefits, 7 costs, 8 mixed.

Recovery grants for small food businesses

The law provides $7 million for small food business recovery and resilience grants and outreach for fiscal year 2022–23. Colorado’s Department of Agriculture administers the funding. Unspent money stays available for the same purpose from July 1, 2023, through December 31, 2026. This provision does not set each business’s grant amount or an eligibility formula.

Prison payroll shifts to recovery funding

For fiscal year 2024-25, Colorado provides about $323.86 million in recovery funding to the Department of Corrections. Its General Fund appropriation falls by the same amount, rather than increasing its total budget. General Fund payroll reductions track recovery money spent in each budget line. Centrally appropriated payroll money can only enter a General Fund payroll line up to its spending as of January 31, 2025.

Infrastructure grants for small community nonprofits

Colorado provides $35 million for small community-based nonprofit infrastructure grants for fiscal year 2022-23. The Department of Local Affairs administers the funding. Money unspent before July 1, 2023, stays available for the same purpose through December 31, 2026. The law does not establish household payments.

Funding for behavioral health workforce grants

Colorado provides two appropriations, about $5 million and $2 million, for behavioral health professional matching grants in fiscal year 2022-23. The Department of Education administers the funding. Money unspent before July 1, 2023, stays available for the same purpose through December 31, 2026. Federal recovery money must follow state rules for committing and spending those funds.

Funding for children’s mental and school health

For fiscal year 2022-23, Colorado provides $4.6 million for pediatric psychiatry consultation and access, including $269,681 in federal recovery money. It also provides $2 million for children’s mental health and $1.5 million for school-based health centers. Pediatric psychiatry money unspent before July 1, 2023, stays available through December 31, 2026. School health money unspent before that date stays available through December 30, 2024. Children’s mental health money unspent before December 30, 2024, stays available through December 30, 2026, subject to federal recovery spending rules.

Funding for Colorado’s behavioral health office

The law provides about $13.75 million for Colorado’s Office of Behavioral Health for fiscal year 2022-23. Money unspent before July 1, 2023, remains available for the same purpose through December 31, 2025. Federal recovery money must follow state rules for committing and spending those funds. This funds the office, not direct household payments.

Funding for community food access

Colorado provides $1 million for the Department of Agriculture’s community food access program for fiscal year 2022-23. Unspent money remains available for the same purpose from July 1, 2023, through December 31, 2026. The law does not set household payments or individual eligibility rules.

Funding for mental health in prisons

Colorado provides $3 million for Department of Corrections mental health operating expenses for fiscal year 2022-23. Money unspent before July 1, 2023, stays available for the same purpose through December 30, 2024. This supports correctional mental health operations rather than direct household payments.

Funding for overdose prevention and harm reduction

For fiscal year 2022-23, Colorado provides $19.7 million for bulk purchases of overdose-reversal medication. The law also provides $6 million for the harm reduction grant fund. These appropriations support program purchases and grants, not guaranteed payments or medication amounts for each person.

Housing funding for Ridge View campus

The law provides about $45 million to Colorado’s Division of Housing for Ridge View campus for fiscal year 2022–23. Money left unspent before July 1, 2023, stays available for the same purpose through December 31, 2026. This provision does not set household eligibility rules or direct payments.

Unused recovery money gets another eligible use

Through December 31, 2026, a governor-designated department can spend qualifying returned recovery money on another eligible use without another appropriation. The money must have been committed by December 31, 2024, and remain unspent on an eligible activity. It must return after a qualifying event blocks its original purpose or after its appropriation ends. Another General Fund purpose requires a General Fund appropriation and an obligation incurred before December 31, 2024. This authority does not create household payments or eligibility rights.

Grants support affordable housing development

Colorado provides $39.3 million for affordable housing development incentive grants for fiscal year 2021-22. The Department of Local Affairs administers the funding for qualifying housing development incentives. The law does not establish direct payments or guaranteed housing savings for renters or homebuyers.

Educator stipends and loan relief change funding

The law replaces fixed appropriations for three educator support programs with money from the Economic Recovery and Relief Cash Fund. For fiscal year 2022-23, the prior amounts were $39 million for student educator stipends and $3 million for test stipends. Temporary educator loan forgiveness previously had a $10 million appropriation. Replacement amounts and individual benefit amounts are not stated; stipend recipients must qualify under their existing programs. Federal recovery money remains subject to rules for committing and spending those funds.

Workforce programs keep unspent funding available

The law replaces a fixed $25 million fiscal year 2021-22 appropriation for workers, employers, and workforce centers. Replacement money comes from the Workers, Employers, and Workforce Centers Cash Fund and is allocated to the state council. Money not committed or spent at that fiscal year’s end remains available in later years without another appropriation. The replacement amount is not stated, and federal recovery money remains subject to federal deadlines.

Health worker recruitment funding is repealed

The law repeals a $6.12 million appropriation for health-care worker recruitment, re-engagement, and staffing for fiscal year 2022–23. That funding came from the Economic Recovery and Relief Cash Fund. The repeal ends this funding provision, not a direct payment benefit for workers.

Less funding for state vaccination operations

Colorado cuts fiscal year 2022-23 immunization operating funds from $6.12 million to $580,000. This reduces agency funding by $5.54 million. The law does not specify changes to household vaccination charges, access, or eligibility.

Less funding for substance use workforce grants

The law cuts substance use workforce stability grant funding from $15 million to about $13.05 million for fiscal year 2022-23. That is a reduction of about $1.95 million. Money unspent before July 1, 2023, stays available for the same purpose through December 31, 2026. The law does not set individual grant amounts.

Less health funding for justice-involved people

Colorado cuts funding for health needs of people in the criminal justice system by $1 million for fiscal year 2022-23. The appropriation falls from about $49.75 million to $48.75 million. Money unspent before July 1, 2023, remains available to Human Services for the same purpose through December 31, 2026.

Lower behavioral health grants and minimums

The law cuts fiscal year 2022-23 behavioral health-care continuum gap grants from $75 million to about $73.81 million. Money unspent before July 1, 2023, stays available for that purpose through December 31, 2026. Separately, required community investment grant awards fall from $35 million to at least $34 million. Required grants for children, youth, and families fall from $40 million to at least $39 million. These minimums apply regardless of funding source; actual awards can be higher.

Less funding for Colorado scholarship initiative

The law cuts fiscal year 2021–22 funding for the Colorado Opportunity Scholarship Initiative Fund. Funding falls from $39 million to $37.966939 million. This provision does not set individual scholarship amounts or an eligibility formula.

Less funding for educator financial help

For fiscal year 2022–23, the law cuts student educator stipend funding from $39 million to $35.61339 million. It cuts educator test stipend funding from $3 million to $2.21855 million. Temporary educator loan forgiveness funding falls from $10 million to $9.417204 million. These are program budget cuts; the provisions do not set individual awards or the number of people affected.

Human Services funding swap is repealed

The law repeals about $63.18 million in fiscal year 2024-25 recovery funding for the Department of Human Services. It also repeals the matching reduction to the department’s General Fund appropriation. This reverses a funding-source swap, not a stated $63.18 million net service cut. The text does not identify changes to individual benefits or eligibility.

Recovery balances move to general budget

On June 30, 2025, the law requires Colorado’s Treasurer to move specified balances to the General Fund. These include about $12.46 million from revenue loss restoration and $13.81 million from economic recovery and relief. Another $6.88 million comes from the refinance discretionary account. These dollars must not come from federal recovery funds. The transfers reduce the source balances and increase General Fund resources, without specifying how that money is spent.

Recovery funds gain money but transfer more

On June 30, 2025, the Revenue Loss Restoration Cash Fund receives about $10.68 million in federal recovery money. The Economic Recovery and Relief Cash Fund receives about $5.7 million. On the same date, they send about $12.46 million and $13.81 million, respectively, in non-recovery money to the General Fund. The funds gain federal money but send out larger non-recovery balances. These transfers do not establish direct household payments.

Recovery money replaces state program balances

On June 30, 2025, federal recovery money enters three state funds while matching non-recovery balances move to the General Fund. The State Highway Fund receives about $10.97 million and sends the same amount out. The Colorado Heritage Communities Fund exchanges about $3.17 million, and Healthy Forests and Vibrant Communities exchanges $32,988. These transfers replace funding sources rather than add net money to these funds. The provisions do not name new projects or household benefits.

Mental health funds exchange funding sources

On June 30, 2025, the law directs about $2.21 million in federal recovery money into the Behavioral and Mental Health Cash Fund. On the same date, about $7.26 million in non-recovery money moves from that fund to the General Fund. The two transfers change both the fund’s balance and its funding sources. They do not establish direct household payments or specify service changes.

Substance use workforce grant funding changes

The law replaces a fixed $15 million appropriation for substance use workforce stability grants with Behavioral and Mental Health Cash Fund money. The replacement amount is not stated. Funding remains directed to the grant program, but this provision no longer specifies a $15 million amount. It does not set individual grants or changes to services.

Housing and homelessness funds exchange money

On June 30, 2025, federal recovery money replaces specified non-recovery balances in three housing and homelessness-related funds. Local Investments in Transformational Affordable Housing receives about $17.52 million, while the homelessness services, recovery care, and housing supports fund receives $9.33 million. The Regional Navigation Campus Cash Fund receives about $15.36 million. Each fund sends the same stated amount of non-recovery money to the General Fund. These paired transfers do not create individual housing aid or new eligibility.

Sponsors & Cosponsors

Cosponsors

Julie McCluskie
Democratic • House
Monica Duran
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 103 • No: 14

House vote • 5/2/2025

Third reading: Bill

Yes: 53 • No: 11

House vote • 5/1/2025

Refer Senate Bill 25-312 to the Committee of the Whole.

Yes: 9 • No: 2

Senate vote • 4/30/2025