Polis, Colorado lawmakers unveil spending plan for billions in federal aid

DENVER, Colo. (KRDO)-- Governor Jared Polis announced Colorado's plan to distribute federal funds awarded through the American Rescue Plan Act alongside state lawmakers Monday.

According to the U.S. Department of Treasury guidelines released earlier this month, Colorado is expected to receive $5.7 billion in funding. Over $3.8 billion will go to the state, $1.1 billion for Colorado counties, $551 million for cities, and $265 million for local governments.

Governor Polis outlined a funding plan Monday for the state's $3.8 billion, dedicating $1.3 billion to Colorado's budget. Another one-third will support workforce development, reducing housing costs, and mental and behavioral health resources. The last third is being allocated toward recovery and relief to create jobs, modernize the state's transportation system, invest in public lands and agricultural support.

A detailed breakdown of the funds includes:

• $1 billion will go toward fortifying the state budget and maintaining fiscal integrity
• $300 million will go towards Colorado’s ongoing response to the COVID pandemic
• Between $400-$550 million will go towards affordable housing and homeownership efforts
• Between $400-$550 million towards mental and behavioral health programs 
• Approximately $200 million towards workforce development and education 
• Approximately $817 million will be for economic recovery and relief
• $404- $414 million for transportation and infrastructure, and parks and agriculture 

“We’ve heard communities across our state loud and clear," Polis said, "The federal stimulus funds that flow from Colorado offer a once in a generation opportunity to improve our quality of life, invigorate our economy and help our state recover faster and stronger than ever before.“ 

According to state leaders, the funds will help put an end to pandemic hardship felt by Coloradans in the last year.

"The pandemic exacerbated many of the existing problems that our society is faced with and too many people are still struggling to recover," Colorado Senate President Leroy Garcia said.

The state plans to spend $2 billion this legislative session. Another $1.8 billion is funds is expected to be used at the beginning of the next legislative session.