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Bill

Bill

HB 1407

State Money Used to Refinance American Rescue Plan Money

2026 Regular Session

HB 1407 authorizes Colorado to substitute state general funds for American Rescue Plan federal dollars, redirecting federal pandemic relief money for alternative state purposes.

Governor Signed
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Bill Summary · HB 1407

Legislative bill overview

HB 1407 proposes using state funds to refinance or replace money Colorado received through the federal American Rescue Plan (ARP), which provided pandemic relief funding. The bill would essentially allow the state to substitute its own general fund dollars for the federal ARP monies, potentially freeing up the remaining federal funds for other purposes or allowing the state to retain flexibility in how those federal dollars are deployed.

Why is this important

The American Rescue Plan distributed over $1.9 trillion nationally and provided Colorado with substantial one-time federal funding that has funded various state programs and initiatives. This bill would fundamentally change how Colorado uses that windfall, with significant implications for state budget planning, program sustainability, and federal fund utilization. The outcome affects which programs receive permanent state funding versus temporary federal support, and whether Colorado is effectively repurposing federal relief money.

Potential points of contention

  • Fiscal sustainability: Using state general funds to replace one-time federal money could create structural budget problems if programs funded this way are expected to continue beyond available state revenue
  • Intent of federal funding: Questions about whether substituting state money for ARP funds aligns with federal guidelines and Congressional intent for pandemic relief spending
  • Opportunity cost: State dollars spent refinancing federal money are unavailable for other priorities, forcing trade-offs in education, infrastructure, or services
  • Accounting and transparency: Complexity in tracking which programs benefit from this refinancing and potential confusion about fund sources and accountability

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

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