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Bill

HB 1361

Pay for Success Program Repeal

2026 Regular Session

Repeals Colorado's Pay for Success Program, eliminating performance-based government contracts tied to measurable service delivery outcomes.

Governor Signed
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Bill Summary · HB 1361

Legislative bill overview

HB 1361 would repeal Colorado's Pay for Success Program, which uses performance-based contracts where government payments to service providers are contingent on achieving measurable outcomes. The bill eliminates this alternative contracting mechanism that has been used for various social and public health initiatives.

Why is this important

Pay for Success models represent a significant shift from traditional government spending, where providers assume financial risk if outcomes aren't met. Repealing the program affects how Colorado funds social services, potentially reverting to conventional procurement methods and changing incentive structures for service providers.

Potential points of contention

  • Program effectiveness data: Supporters may argue outcomes haven't justified the complexity, while proponents contend the program drives accountability and innovation in service delivery
  • Cost implications: Unclear whether reverting to traditional contracts reduces administrative overhead or increases total program costs through less efficient vendor accountability
  • Existing contracts: Repeal timing raises questions about how to unwind current Pay for Success agreements without disrupting ongoing services or breaching contracts

Compiled from official sources — confirm details with the bill’s official record.

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