Colorado Senate Democrats Criticize GOP-Led Congressional Budget, Predict Devastating Consequences

Strategic Insights -

Colorado's state departments have detailed the devastating impacts of the federal budget bill, H.R.1, passed by the GOP-led Congress, including significant increases in health care and energy costs for Coloradans and cuts to Medicaid and SNAP that will cause Coloradans to lose access to critical safety net programs. State economists anticipate an over $1 billion hole in the state budget for the current fiscal year, which began on July 1. Lawmakers already had to address a $1.2 billion deficit this year, and now face an additional $1.2 billion hole from H.R.1. The budget will mean severe cuts to core services and key priorities for Coloradans.

Key Takeaways:

  • H.R.1 will result in a $1.2 billion hole in the state budget for the current fiscal year, with estimates suggesting a revenue reduction of $1.2 billion this fiscal year (FY26) and a reduction of $679 million in FY27 and future years.
  • Over 193,000 Coloradans are expected to lose Medicaid health insurance coverage, and many more on the individual market will face higher premiums, with an average increase of 28%, and 38% in parts of Colorado.
  • The federal budget slashes provider payments and cuts federal funding for Medicaid, Medicaid Expansion, programs for Coloradans with Disabilities, and CHP+ coverage for children and pregnant women, which will cost the state Medicaid program $2.5 billion by 2032.
  • H.R.1's changes to EITC and FATC will be turned off for the next two tax years, increasing taxes for working people and families, and taking money away from some of the most vulnerable Coloradans.
  • SNAP will be reduced by $170 million, affecting over 600,000 Coloradans who rely on food assistance, many of whom will lose food assistance or face new administrative hurdles.

Statistics:

  • Revenue reduction: $1.2 billion (FY26) and $679 million (FY27 and future years).
  • Medicaid health insurance coverage loss: 193,000 Coloradans.
  • Premium increase: 28% (average) and 38% (parts of Colorado).
  • Medicaid program cost reduction by 2032: $2.5 billion.
  • Reduction in EITC and FATC tax credits for working people and families: $0, down from $4,870 (before tax credits were turned off).
  • SNAP reduction: $170 million.
  • Jobs lost: 1,950 due to H.R.1's energy policies.
  • Household income loss in Colorado: $190 per household.

Sources:

  • Senate Democrats State departments
  • Office of State Planning and Budgeting (OSPB)
  • Connect for Health Colorado
  • Colorado Energy Office