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SB 2

State-Only Funding for Certain Entities

2025 First Extraordinary Session

Colorado SB 2 converts specified entities from federal-state co-funding to state-only funding, shifting budget responsibility entirely to the state.

Sent to the Governor
#healthcare&healthinsurance
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Bill Summary · SB 2

Legislative bill overview

SB 2 restricts certain entities in Colorado from receiving federal funding and instead requires them to be funded exclusively through state appropriations. The bill fundamentally shifts the funding source for these specified organizations from a mixed federal-state model to a state-only model, effective upon the governor's signature in August 2025.

Why is this important

This change has significant budgetary implications for Colorado's state budget, as the state assumes full financial responsibility for entities previously supported by federal dollars. The shift may affect the scope, capacity, or continuity of services these entities can provide, depending on whether state funding levels match previous combined federal-state support levels.

Potential points of contention

  • State budget impact: Transferring federal funding obligations to the state could strain Colorado's budget and require reallocation from other priorities or tax increases
  • Entity viability: Organizations dependent on federal funding may face reduced resources if state appropriations don't match previous federal contributions
  • Federal compliance: Entities may lose access to federal grants, cooperative agreements, or programs that carry specific federal requirements or additional resources

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

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