Illustration: Eniola Odetunde/Axios
The Trump administration halted federal grants and financial assistance programs Tuesday, sparking widespread confusion and throwing Colorado budgets into chaos.
State of play: The extent of the impact is hard to underestimate, government officials said.
- Federal dollars account for 30% of the state’s $40 billion annual budget and hundreds of millions go to Denver and surrounding localities.
- Moreover, area hospitals and nonprofits receive huge sums in federal aid each year.
What they’re saying: “It doesn’t look great for the people of Colorado,” said Sen. Jeff Bridges (D-Greenwood Village), the chair of the legislative Joint Budget Committee.
Between the lines: The temporary pause, outlined in a memo from the White House Office of Management and Budget, is designed to give the new administration time to review agency spending.
- Agencies have until Feb. 10 to submit detailed information on any programs, projects or activities subject to the pause.
- The memo says the pause “does not include assistance provided directly to individuals.”
Yes, but: It’s creating chaos at the state level, where lawmakers are midway through crafting the next spending plan for the 2025-26 fiscal year. State budget writers were left dumbfounded and scrambling to determine affected programs.
- “It’s an ‘Oh my God,'” said state Rep. Emily Sirota (D-Denver), a state budget writer. “I think we’re all trying to figure out what it means.”
- U.S. Sen. John Hickenlooper, the state’s former Democratic governor, said in a statement that the pause would stop money for “our police departments, our rural hospitals, programs for homeless veterans [and] nearly 9,000 kids in Colorado Head Start programs may be locked out.”
By the numbers: The federal government was projected to contribute $13.4 billion to state-level programs. The bulk — 74% — is earmarked for health care and related safety net programs.
Between the lines: Beyond the Trump administration’s suspension, Colorado budget writers are wary about what’s to come from Washington in terms of spending cuts.
- “There are any number of things that can be done that could dramatically change our budget and our ability to serve Coloradans in the way we do,” Sirota said.
Zoom in: Denver received approximately $100 million in federal dollars in its 2025 budget, primarily through grants.
- Joshua Rosenblum, a spokesperson for Denver’s Department of Finance, said that money went toward critical infrastructure improvements, overdose prevention and other areas.
- Additionally, the Regional Transportation District received $150 million from the Federal Transit Administration to help complete the East Colfax rapid transit line.
This is a developing story. Check back for more details.
