Senate Charts Legislative Pathways for $3.8 Billion in American Rescue Plan Act Stimulus Dollars

Bills will allocate $70 million in additional funding for new stimulus proposals, set aside nearly $380 million for transportation funding, and create frameworks carefully designed to absorb federal stimulus funding and power the Colorado Comeback for years to come

DENVER, CO - Today, the Senate introduced and quickly took action on several bills utilizing federal funding allocated to the state through the American Rescue Plan. Of the five bills introduced, two will establish mechanisms to manage the influx of federal dollars, allowing  – the state to remain agile and able to respond to the changing needs in the economy over the coming months. Another two bills will utilize the infusion of federal dollars to create funding mechanisms for several new stimulus bills this legislative session. And an additional bill will preserve over $800 million for future investments – enabling the funds to be deployed wisely and effectively following an interim stakeholder process this summer. 

“Since the passage of The American Rescue Plan we have been working diligently on investment initiatives for this once-in-a-lifetime funding. Our creative collaboration has enabled us to move quickly and efficiently for the people of Colorado – ensuring that our state is set up to not only repair what the pandemic has broken, but build back even stronger,” said Senate President Leroy Garcia (D-Pueblo). “The bills introduced today will support Colorado’s most vulnerable populations – especially those who have been disproportionately impacted by the pandemic – and fortify the state’s fiscal integrity for years to come.”

“Thanks to the hard work by our federal delegation in DC, help is here for the people of Colorado. Now it’s our turn to take up the torch and make transformational investments in affordable housing, mental health, and workforce development – ensuring Colorado emerges from the pandemic stronger than ever before,” said Senate Majority Leader Fenberg (D-Boulder). “This is a historic opportunity to invest in the long-term prosperity of Coloradans today, to make sure we’re not leaving anyone behind in our pursuit of a better tomorrow.”

Specifically, SB21-288, a bill sponsored by Senators Dominick Moreno & Bob Rankin creates the American Rescue Plan Act of 2021 Cash Fund to hold $3.8 billion that the state is receiving from the Federal Coronavirus State Fiscal Recovery Fund. Additionally, this bill sets aside nearly $380 million from this fund to support the state highway and multimodal transportation infrastructure projects, as well as fulfill initiatives set forth in SB21-260. This bill was passed by the Senate Appropriations Committee this afternoon with bipartisan support.

SB21-289, a bill sponsored by Senators Moreno & Rankin, creates the Revenue Loss Restoration Cash Fund, which will receive $1 billion in federal funding and will go towards supporting K-12 education, housing, asset maintenance, seniors, criminal justice, state parks, agriculture, and transportation infrastructure in the 2022 legislative session. Overall, this legislation works to fortify the state budget and maintain fiscal integrity as Colorado’s Comeback continues. This bill was also passed by the Senate Appropriations Committee this afternoon with bipartisan support.

SB21-291, sponsored by Senate Majority Leader Steve Fenberg and Minority Leader Holbert, creates the Economic Recovery and Relief Cash Fund to respond to the public health emergency with respect to COVID-19 or its negative economic impacts. Specifically, the bill allocates $848 million for future legislative investments to be made following a robust community stakeholding process over the next six months. In addition, this bill allocates $40 million for small businesses grants economic development following the COVID-19 pandemic. Furthermore, the bill sets aside $10 million to incentivize small business development in rural Colorado and to provide cash incentives to businesses that hire remote employees in rural areas of the state. This bill was also passed by the Senate Appropriations Committee this afternoon with bipartisan support.

SB21-292, sponsored by Senators Faith Winter and Bob Rankin, seeks to support victims of domestic violence. Stay-at-home orders and other pandemic responses have increased instances of domestic violence and reduced the ability of victims to access services. This bill seeks to fill that void. Specifically, the legislation will allocate $15 million across various programs for victims of domestic abuse, including the Address Confidentiality Program, which will help protect domestic violence victims who may be threatened by having a public address; the Domestic Violence Program, which will provide grants to local nonprofits for rapid rehousing, flexible financial assistance, and retrofitting of shelters for domestic violence victims; and Victims Assistance & Law Enforcement programs, which provide crisis intervention services, victim services referrals, victim assistance programs, and counseling to those in need. This bill was passed by the Senate Finance committee this afternoon with bipartisan support.

SB21-290, sponsored by Senator Jessie Danielson and Janet Buckner, dedicates $15 million to support Colorado’s aging population. These funds will go towards a variety of senior-focused programs that will expand housing assistance, increase access to health services, subsidize nutrition programs, and improve transportation opportunities to medical appointments. This bill was also passed by the Senate Finance committee this afternoon with bipartisan support.

After being passed in Appropriations Committee, SB21-288, SB21-289 and SB21-291 were given preliminary approval by the full Senate on second reading.  Meanwhile, SB21-290 and SB21-292 await further consideration by Senate Appropriations.