Senate Gives Initial Sign-Off to The Colorado Defense Fund

The Colorado Defense Fund sets aside $4 million to “Musk-proof” Colorado from federal actions that threaten the Colorado way of life

DENVER, CO – Today the Senate gave initial sign-off to Senators Jeff Bridges, D-Arapahoe County, and Judy Amabile’s, D-Boulder, legislation to protect Colorado taxpayers and critical state services from funding freezes and federal actions that threaten the Colorado way of life.

The Colorado Defense Fund, HB25-1321, comes in the wake of recent adverse action by the Trump administration, including federal funding freezes, disruptions to essential services, and mass lay-offs. The bill would set aside $4 million to protect Colorado’s interests from federal efforts to freeze funding, halt contracts, or otherwise disrupt essential services for Coloradans.

“Our Colorado way of life is not insulated from the chaos we’re seeing from Washington,” said Bridges. “We’ve already seen unprecedented funding and grant program freezes from the federal government that have halted services that Coloradans rely on, with little consideration of long term impacts. This additional funding will ensure that Colorado is ready to respond swiftly and effectively to future federal actions that threaten nonnegotiable services like health care, early childhood education, and public safety.”

“Federal funding provides essential services like fixing our roads and improving access to health care – services that Colorado cannot fully fund alone,” said Amabile. “When billionaires in Washington play games with taxpayer money, everyday Coloradans are going to feel the impacts. The Colorado Defense Fund is a critical way for us to protect our taxpayers from federal overreach and preserve our Colorado way of life.”

Coloradans pay more in federal taxes than the state receives back in federal funding, making federal funding freezes even more painful for taxpayers. The legislation stands up for Colorado, protects Colorado taxpayers’ return on investment, and minimizes the impact of volatile federal actions on our economy and the Colorado way of life.

Under the bill, the governor could use funds to respond to federal action. This includes working to mitigate the impacts of disruptions in federal funding and responding to legal proceedings, inquiries, hearings, and investigations initiated or threatened by the federal government. These funds could also be used to defend or protect state officers and employees acting in their official role. 

In January, the Trump administration, through the recommendation of Elon Musk’s DOGE, froze more than $570 million in federal funding to Colorado. In response, Colorado joined a 22-state lawsuit to restore federal funding. 

While most of the funding has been restored through a federal judge, more than $69 million in public safety grants are still being withheld by the federal government. Colorado’s ability to deliver on essential government services relies on $13.9 billion in federal funding. 

Sweeping federal action has caused uncertainty and disruption for Colorado. For example, the federal government recently revoked more than $250 million in federal public and behavioral health care funding and $25.6 million already allocated to address drought in the Colorado River Basin has been paused. 

HB25-1321 will next be heard on third and final reading in the Senate before moving to further consideration by the House.