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ColoradoSB26-1812026 Regular SessionSenateWALLET

Works Program Reserves & Cost of Living Adjustment

Sponsored By: Barbara Kirkmeyer (Republican), Judy Amabile (Democratic), Kyle Brown (Democratic), Rick Taggart (Republican)

Signed by Governor

Human Services

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 2 costs, 0 mixed.

Annual Colorado Works increases starting 2028

Beginning July 1, 2028, Colorado Works basic cash grants increase each state budget year by at least 2%. The law uses a higher rate when the three-year average of Social Security cost-of-living adjustments exceeds 2%. That average includes the current year's adjustment and the previous two years. Each grant must equal at least the prior year's amount plus this increase.

Longer Colorado Works help for families

Counties can extend Colorado Works cash assistance beyond the 60-month lifetime limit for households that show good cause. The state board must set statewide standards and procedures for these extensions. Good cause includes child-only cases, single-parent households with a child under one, and hardship defined by state rules. Extensions are allowed, not guaranteed; the law does not specify their length or payment amount.

Colorado Works inflation increases pause temporarily

Colorado Works basic cash grants receive no cost-of-living increase for the state budget years beginning July 1, 2026, and July 1, 2027. This pause does not itself cut the existing grant amount. The pause provision is repealed effective July 31, 2028.

Colorado Works reserve safeguards and reporting end

The law removes Colorado Works reserve requirements tied to 15% and 25% thresholds and mandatory transfers between reserves. It ends required reserve backfills using state general funds or the unclaimed property trust. It also removes the mitigation fund for counties with reserves below 15% of their county block grant. Required quarterly reserve reviews, annual reports to the Joint Budget Committee, and participant exit and follow-up interviews also end. These changes do not directly change household eligibility or grant amounts. The law takes effect immediately, with the cash-adjustment dates described separately.

Sponsors & Cosponsors

Sponsors

  • Barbara Kirkmeyer

    Republican • Senate

  • Judy Amabile

    Democratic • Senate

  • Kyle Brown

    Democratic • House

  • Rick Taggart

    Republican • House

Cosponsors

  • Chad Clifford

    Democratic • House

  • Julie McCluskie

    Democratic • House

  • Monica Duran

    Democratic • House

  • Meg Froelich

    Democratic • House

  • Mandy Lindsay

    Democratic • House

  • Manny Rutinel

    Democratic • House

  • Byron Pelton

    Republican • Senate

  • Cathy Kipp

    Democratic • Senate

  • Cleave Simpson

    Republican • Senate

  • James Coleman

    Democratic • Senate

  • Janice Rich

    Republican • Senate

  • Kyle Mullica

    Democratic • Senate

  • Rod Pelton

    Republican • Senate

  • Scott Bright

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 96 • No: 21

House vote • 5/11/2026

Third reading: Bill

Yes: 46 • No: 18

House vote • 5/8/2026

Refer Senate Bill 26-181 to the Committee of the Whole.

Yes: 10 • No: 1

Senate vote • 5/6/2026

Third reading: Bill

Yes: 33 • No: 2

Senate vote • 5/5/2026

Refer Senate Bill 26-181 to the Committee of the Whole and with a recommendation that it be placed on the consent calendar.

Yes: 7 • No: 0

Actions Timeline

  1. Governor Signed

    6/2/2026House

  2. Signed by the President of the Senate

    5/22/2026Senate

  3. Signed by the Speaker of the House

    5/22/2026House

  4. Sent to the Governor

    5/22/2026House

  5. House Third Reading Passed - No Amendments

    5/11/2026House

  6. House Third Reading Laid Over Daily - No Amendments

    5/9/2026House

  7. House Committee on Appropriations Refer Unamended to House Committee of the Whole

    5/8/2026House

  8. House Second Reading Special Order - Passed - No Amendments

    5/8/2026House

  9. Senate Third Reading Passed - No Amendments

    5/6/2026Senate

  10. Introduced In House - Assigned to Appropriations

    5/6/2026House

  11. Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the Whole

    5/5/2026Senate

  12. Senate Second Reading Special Order - Passed - No Amendments

    5/5/2026Senate

  13. Introduced In Senate - Assigned to Appropriations

    4/27/2026Senate

Bill Text

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