Colorado Gov. Polis Cuts $252M Spending Amid $783M State Budget Shortfall

Colorado Governor Jared Polis signed an executive order implementing $252.2 million in state spending cuts to address a roughly $750 million budget deficit caused primarily by federal tax and spending changes under President Trump's legislation. The cuts mainly impact Medicaid reimbursement rates, affordable housing funds, and higher education, while protecting K-12 education and public safety funding. Polis is also redirecting over $100 million in affordable housing funds and plans to use more than $300 million from the state's reserves to close the budget gap. The state legislature passed tax changes to raise approximately $250 million and authorized the sale of tax credits to help offset the deficit, but delegated spending cut decisions to the governor. Polis emphasized efforts to minimize harm to vulnerable populations and maintain a strong fiscal condition despite the politically sensitive nature of some cuts, including those affecting transgender inmates and undocumented immigrants. The governor and lawmakers framed their actions as responsible measures to balance Colorado's budget, contrasting their approach with the federal government's fiscal decisions.