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HB 25-1279

State-Level Data for Colorado Works Program

2025 Regular Session Introduced by Shannon Bird and 24 co-sponsors

Requires standardized, county-level monthly reporting of Colorado Works (TANF) spending and outcomes; publishes public monthly data and annual policy impact reports.

Governor Signed
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Bill Summary · HB 25-1279

HB 25-1279 — State-Level Data for the Colorado Works Program

Status: Governor signed (May 28, 2025)

Purpose

Require standardized, county-level monthly data collection and state reporting on Colorado Works (the state TANF program) to improve transparency about how TANF funds are spent, the effects of policy changes on caseloads, and the adequacy of basic cash assistance eligibility.

Key statutory changes

  • Adds Colorado Revised Statutes section 26-2-727 (Improving state-level data for the works program annual report).
  • Adds subsection (1)(f) to section 26-2-709 requiring a “standard of need” report on basic cash assistance eligibility.

Required data and outputs

By October 1, 2025:
- The Department of Human Services (CDHS), with the Works Allocation Committee, must develop a standardized process for counties to collect and report (monthly, to the extent feasible) the following:
- Dollar amounts of county spending of Colorado’s TANF allocation, broken out by categories such as basic cash assistance, diversion payments, supportive services, multiple administrative cost categories, transfers (e.g., to child care assistance), and other uses.
- Dollar amounts spent on third‑party contracted services for participants who do and do not receive basic cash assistance.
- Annual analysis of the impact of specified policy changes on TANF caseloads, churn, and average participant duration — including changes to sanctions/re‑engagement, extensions of the 60‑month limit, work‑requirement exemptions, and income disregards (as enacted in HB22‑1259).
- Number and share of applications denied due to ineligibility.
- CDHS must develop recommended standardized outcome measures and required levels of effectiveness for third‑party contracts (applies to new or renewed contracts only).
- Reporting should use the County Financial Management System where possible.

Beginning January 1, 2026:
- CDHS must publish the collected information monthly on its website in a publicly accessible format and submit annual reports to the Joint Budget Committee (JBC) each January (and provide the data to the Works Allocation Committee for review).

By July 1, 2026:
- CDHS must report to the JBC on the “standard of need” for basic cash assistance, including comparisons with other states, a proposed updated standard intended to reduce extreme child poverty and promote mobility, estimated costs, and the number of additional families affected.

Fiscal and operational impacts

  • Final appropriation language (committee amendment) appropriates $154,000 from federal TANF block grant funds to the Department of Human Services (Office of Economic Security) for FY 2025‑26 for works program evaluation.
  • Legislative Council and JBC fiscal notes estimated additional DHS costs and staffing: initial estimates ranged (depending on version) from roughly $151,645 to $301,645 of federal TANF funds and 0.8 FTE (prorated) increasing to 1.0 FTE ongoing; total program costs including centrally appropriated items were estimated roughly $167k–$331k in FY 2025‑26 depending on version. A contractor evaluation (to assess policy impacts) was identified as a needed expense.
  • JBC staff noted that additional use of TANF funds reduces TANF reserves and projected potential reserve shortfalls requiring backfill (potential General Fund exposure in later years if trends continue).
  • Counties: increased monthly reporting workload and associated costs; CDHS must provide technical assistance and training.

Timing / Effective date

  • Statutory deadlines: Oct 1, 2025 (development of standards/recommendations); Jan 1, 2026 (monthly publication begins and Jan annual reports to JBC); July 1, 2026 (standard‑of‑need report to JBC).
  • Effective date: 90 days after adjournment sine die of the General Assembly (standard delayed effective date), assuming no referendum petition.

Who is affected

  • Department of Human Services (implementation, analysis, public posting).
  • County human services departments (monthly data collection and submission).
  • Third‑party contractors (new/renewed contracts subject to standardized outcome measures).
  • Policymakers and the public (greater transparency into TANF spending and program outcomes).

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

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