Senate UNANIMOUSLY Passes Package of Bills Creating Pathways for $3.8 Billion in American Rescue Plan Act Stimulus Dollars

Bills will 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 passed several bipartisan bills utilizing federal funding allocated to the state through the American Rescue Plan. Two of these policies 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. The third bill will preserve over $800 million for future investments following an interim stakeholder process this summer. 

SB21-291, sponsored by Senate Majority Leader Steve Fenberg and Minority Leader Chris 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, as well as $10 million to incentivize small business development in rural Colorado and those that hire remote employees in rural areas of the state. 

“Effectively deploying this substantial amount of federal funding must strike a balance between urgency and deliberation,” said Senate Majority Leader Fenberg (D-Boulder). “This carefully crafted package of legislation will accomplish both goals by immediately investing in Colorado communities, as well as preserving considerable funding for longer-term investments that can respond to the growing needs of the state’s recovery.”

SB21-288, 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. 

SB21-289, also 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. 

“A major lesson learned over the last year has been how dynamic the state economy can be, and how strategically our recovery efforts must be crafted. Careful planning, creative investments, and fiscal responsibility got us to where we are today, and we must continue these efforts to ensure long-term prosperity for Colorado,” said Senator Moreno (D-Commerce City). “As state legislators, we are incredibly grateful for this infusion of federal funds, and these bills will help provide a pathway for a sustained and lasting recovery that incorporates stakeholder input and outreach to every corner of the state.”

All three bills now head to the House for further consideration. To learn more about the legislation and track their status, visit leg.colorado.gov.