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HB 25-1321

Support Against Adverse Federal Action

2025 Regular Session Introduced by Judy Amabile and 49 co-sponsors

The bill lets Colorado use $4 million from the IIJA Cash Fund to prepare for and respond to adverse federal actions, including legal defense and staffing, with a 2028 repeal.

Governor Signed
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Bill Summary · HB 25-1321

HB 25-1321 — Support Against Adverse Federal Action

Status: Governor signed (effective May 16, 2025)
Introduced: April 4, 2025
Primary sponsors: Reps. Julie McCluskie and Shannon Bird; Sens. Jeff Bridges and Judy Amabile (many co‑sponsors)

Overview / Purpose

HB 25-1321 authorizes the Governor’s Office to use money in the "Infrastructure Investment and Jobs Act" (IIJA) Cash Fund to prepare for and respond to “adverse federal actions” that could reduce or otherwise affect federal disbursements, grants, contracts, or other funds received by Colorado. The bill also provides a one‑time appropriation to implement that authority.

Key provisions

  • Adds a new allowable use to the IIJA Cash Fund (C.R.S. 24-75-232):
    • The Governor’s Office may spend fund money, at the Governor’s discretion, to:
    • hire personnel or retain contractors related to federal government actions that affect federal disbursements, grants, contracts, or other federal money to the state;
    • reimburse the Department of Law for costs associated with special assistant attorneys general (per C.R.S. 24-31-101 and 24-31-111(5)) who provide:
      • legal services to state officers or employees in legal proceedings, inquiries, hearings, or investigations initiated, pursued, or threatened by the federal government (including congressional inquiries); and
      • criminal defense services for state officers or employees for legal actions arising from official acts or decisions;
    • make other expenditures, as determined by the Governor, consistent with preserving state sovereignty or protecting federal funding streams that benefit the state.
  • The Governor’s Office may seek, accept, and expend gifts, grants, or donations (public or private) and must transmit received sums to the State Treasurer to be credited to the IIJA Cash Fund for these purposes.
  • The statutory subsection adding these uses is set to repeal July 1, 2028. Any unexpended and unencumbered money in the fund upon repeal reverts to the General Fund.

Funding & fiscal impact

  • Appropriation: $4,000,000 cash funds from the IIJA Cash Fund to the Office of the Governor for FY 2025‑26.
    • Money not spent before July 1, 2026, is further appropriated for FY 2026‑27 (roll‑forward authority).
  • Fiscal notes (initial and final) show a one‑time increase in state expenditures of $4 million in FY 2025‑26; no ongoing FTE or TABOR refund impact is projected.
  • Gifts/grants/donations received for these purposes are not counted toward the state’s TABOR limit.

Who is affected

  • Primary implementer: Office of the Governor (discretionary authority over spending).
  • Department of Law: may receive reimbursements for contracted special assistant attorneys general.
  • State officers and employees: potential recipients of legal representation funded under the statute.
  • Contractors, consultants, and legal service providers retained to respond to federal actions.
  • Source of funds: limited to the IIJA Cash Fund and any gifts/grants/donations credited to it.

Timeline and legislative actions

  • Introduced in House: April 4, 2025.
  • Passed both chambers (House and Senate) in April 2025.
  • Sent to Governor: May 12, 2025.
  • Governor signed into law: May 16, 2025 (effective on signature).
  • Statutory language repeals July 1, 2028; unspent funds revert to the General Fund upon repeal.

Practical considerations

  • The bill grants broad, discretionary authority to the Governor to allocate up to the appropriated funds to legal defenses, staffing, and related actions aimed at preserving federal funding and state sovereignty.
  • Use is limited to available cash within the IIJA Cash Fund and any credited donations; no ongoing general fund obligation was created.

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

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