Calls on Lawmakers To Do the Right—But Difficult—Thing To Protect Colorado Families

DENVER—Today, Gov. Jared Polis called Colorado lawmakers back to the Capitol beginning Aug. 21, to address the deep and immediate harm caused by the newly passed federal Republican Megabill, officially known as HR-1. The Colorado Fiscal Institute (CFI) applauds the governor’s bold and timely action and urges the General Assembly to meet this moment with the clarity and compassion it demands.

This federal tax megabill has caused a $1.2 billion budget shortfall, putting Colorado families, children, and older adults at risk to fund tax breaks for the wealthy and big corporations—many of which operate far outside our state, even though it may not seem that way.

“This bill was a windfall for the rich and powerful, and a gut punch to everyone else,” said Kathy White, Executive Director of CFI. “And now our lawmakers are being asked to do the impossible: balance the budget in a way that doesn’t leave the most vulnerable Coloradans behind. These are hard choices, but we believe our leaders are up to the challenge.”

The impending impacts of the harmful Republican Megabill are staggering. New polling and analysis show that voters are most concerned about rural hospital and nursing home closures; the loss of school meals for children; the loss of health coverage for roughly 15 million Americans; increases in health care premiums for nearly 75% of people; higher electricity prices; and the rollback of progress toward a clean energy economy.

The consequences of inaction could be devastating. In Colorado, these cuts risk:

• The closure of six rural hospitals, forcing rising costs for all Coloradans
  
• The loss of some food assistance for 55,000 Coloradans, including many children, and more red tape for parents and other caretakers of children and older adults
  
• New paperwork and other hurdles that could put as many as 305,000 Coloradans at risk of losing health coverage, and another 35,000 at risk due to skyrocketing premiums
  
• The average household utility bill climbing $110 per year
  
• The loss of access to affordable electric vehicles that make everyday commutes less expensive and help protect Colorado’s outdoors for future generations

The bill’s benefits, meanwhile, overwhelmingly go to the top 1%, and to corporations that may technically be headquartered in Colorado but are owned, operated, and profiting far from here. According to the Institute on Taxation and Economic Policy’s (ITEP) estimates, the top 1% wealthiest Coloradans and profitable corporations get a break worth $2.1 billion in state and federal taxes in 2026 alone, while working families face higher costs for everything from food to rent to health care. 

“The people who got the biggest tax breaks from this bill aren’t feeling the effects of school lunch cuts or hospital closures,” White added. “They’re sitting in boardrooms across the country, celebrating a windfall. Meanwhile, Coloradans are being told we can’t afford basic care for our kids and grandparents.”

Colorado’s Tax System Is Unique

Unlike most states, when Congress cuts taxes, Colorado’s tax code automatically mirrors them and forces cuts to services. At the same time, the state constitution prevents changes that could help fill the gap. CFI and partners have warned for months about the damage this bill would cause. Yet four Colorado congressional Republicans—Reps. Lauren Boebert, Gabe Evans, Jeff Crank, and Jeff Hurd—still voted in favor of it, knowing it would blow a hole in our budget and endanger Colorado lives.

Now, it’s up to state lawmakers to clean up the mess, and CFI is calling on them to lead with heart, data, and fairness.

“This is a manufactured crisis from this big ugly bill, and the fallout will hit families who can least afford it,” said Adam Fox, deputy director of the Colorado Consumer Health Initiative (CCHI). “The data is clear. Lawmakers must make the moral and prudent choice to put people first and protect Colorado families. Our focus must be on finding solutions that keep Coloradans covered and create a health care system that works for all Coloradans. Our state’s health depends on it.”

Despite the damage, CFI sees this special session as a chance to turn the tide, not only to protect vital programs today, but to lay the groundwork for a fairer tax system tomorrow.

“This isn’t just about cuts and crisis management,” said White. “It’s about rebalancing a system that’s been tilted toward wealth and power for far too long, and making sure that our budget rules put Coloradans first. This situation has shown us how vulnerable Colorado is to the decisions made by politicians in Washington, D.C. We hope lawmakers will soften the blow to families most harmed by the megabill this month and look to real budget reforms next year.”

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About The Colorado Fiscal Institute
The Colorado Fiscal Institute is a nonprofit, nonpartisan organization that provides credible, independent, and accessible information and analysis of fiscal and economic issues facing Colorado. CFI believes in people-centered, fiscal and economic policies that advance equity and widespread prosperity in Colorado. Learn more at www.coloradofiscal.org.

Póngase en contacto con
Hannah Morris, Directora de Comunicación
Instituto Fiscal de Colorado
morris@coloradofiscal.org