THE MOTHER LODE
A short, sweet, and rich summary of what’s happened at the Capitol
The Colorado General Assembly has once again convened under the cloud of a significant budget shortfall. As required by the state’s constitution, lawmakers must pass a balanced budget, but this year that task comes with a projected deficit of $850 million or more.
The Joint Budget Committee, Gov. Polis’ office, and legislative leaders are now tasked with closing that gap. Not surprisingly, the causes of the deficit are already a point of political disagreement. Democrats argue the shortfall is driven by federal policies, specifically Federal House Resolution 1 (Big Beautiful Bill), combined with the fiscal constraints of the Taxpayer’s Bill of Rights (TABOR). Republicans counter that the deficit stems from overspending as well as converting one-time federal COVID relief funds into ongoing state programs.
While budget reductions and fiscal restraint are expected to dominate the session, the opening weeks have already been marked by intense debate. On the first day of bill introductions, lawmakers filed roughly 100 measures, including resolutions. That number has since grown to more than 200 bills, covering a wide range of issues, many of them controversial.
On the first day of session, House Speaker Julie McCluskie and Senate President James Coleman urged their colleagues to reduce divisiveness
and work more collaboratively. That tone, however, quickly shifted. Partisan divisions have been especially visible during debates over extreme risk protection orders (ERPOs), commonly known as red flag laws, as well as immigration policy. Sens. Tom Sullivan and Julie Gonzales introduced Senate Bill 26-004, which would expand who is eligible to file ERPO petitions against individuals. The proposal was met with fierce debate during its committee hearing and on the Senate floor. The bill ultimately passed the Senate and now moves to the House, where it is expected to pass but will likely face continued opposition. On the Republican side, newly appointed Rep. Scott Slaugh introduced House Bill 26-1072, which would eliminate the use of ERPOs in Colorado altogether. That bill is not expected to advance out of committee.
The Democratic majority has also revived the Labor Peace Act, legislation vetoed by Gov. Jared Polis last year. This year’s version is nearly identical to last year’s bill. The proposal would change the unionization process by allowing workers to unionize with a simple majority vote in the first election. Under current law, a second election is required, with a supermajority of at least 75% needed for approval. This framework has guided labor negotiations in Colorado for more than 80 years. Despite extensive negotiations between business leaders and the governor’s office, discussions have stalled. The expectation is that the bill will pass the legislature again and face another gubernatorial veto. If this is to occur, observers predict that Democrats would reintroduce the measure next session with a new governor who may be more inclined to sign it into law.
Affordable housing is another major focus this session. Democrats are emphasizing high-density housing, particularly near public transit, and are proposing to allow transit districts, school districts, universities, and nonprofit organizations to develop their land for affordable housing projects. Republican Rep. Max Brooks has offered an alternative approach, introducing legislation centered on tax credits to increase housing supply through market-based incentives. Lawmakers are also expected to take up legislation related to data centers and Artificial
Intelligence (AI).
One thing is certain: the 2026 legislative session is shaping up to be contentious, with no shortage of political fireworks.
Notable House Bills:
HB26-1001 – Housing Development on Qualifying Properties HB26-1005 – Worker Protection Collective Bargaining HB26-1012 – Consumer Protections to Promote Fair Market Pricing HB26-1021 – Second Amendment Protection Act HB26-1030 – Data Center & Utility Modernization HB26-1036 – Local Taxes on Vacant Residential Property HB26-1054 – Protections for Worker Safety HB26-1061 – Community Integration Housing Tax Credits HB26-1065 – Transit and Housing Investment Zones HB26-1072 – Right to Firearm Possession & Elimination of Extreme Protection Orders
Notable Senate Bills:
SB26-004 – Expand List of Petitioners for Protection Order SB26-005 – Rights Violation in Immigration Enforcement Remedy SB26-016 – Prohibit Discharge Preproduction Plastic Materials SB26-018 – Legal Protections for Dignity of Minors SB26-022- Challenges Meeting 2030 Emissions Reduction Goals SB26-032 – Promoting Immunization Access SB26-036 – Prison Population Management Measures SB26-042 – Revenue Classification Taxpayer Bill of Rights SB26-043 – Record Keeping & Regulation of Sale of Firearm Barrel SB26-044 – Tax Collection Mineral Rights County Treasurers SB26-063 – Nonemergency Medical Transportation Services SB26-066 – Regulation of Compounded Weight-Loss Medication
Notable Resolutions:
SJR26-006 – Coloradans Navigating Complex United States Immigration System SR26-001 – Morgan County Road Improvements
Budget Bonanza: Joint Budget Committee (JBC) Watch
All that’s happening with the Joint Budget Committee — what Colorado’s Joint Budget Committee is doing with the state budget.
What Colorado’s Joint Budget Committee is doing with the state budget.
The Joint Budget Committee has been working to identify solutions to the budget shortfall and is now wrapping up supplemental funding requests from state agencies. These supplemental requests seek additional funding beyond what was originally approved.
One notable request came from the Department of Corrections, which sought funding for additional inmate beds. The JBC initially denied the request on a 4–2 vote, only to reverse course and approve it a week later. The JBC has also met numerous times with the Office of State Planning and Budget (OSPB), though significant disagreements remain. One of the most contentious issues involves Pinnacol Assurance, Colorado’s insurer of last resort. The governor’s budget office has proposed privatizing Pinnacol, arguing that doing so would provide greater flexibility and generate an estimated $400 million to help balance the state budget. But many members of the JBC and the broader legislature remain skeptical, and several alternative proposals, including a potential ballot measure, for the quasi-governmental entity are under discussion.
As negotiations continue, decisions made in the coming weeks will play a critical role in shaping Colorado’s fiscal outlook and broader economic environment.
CAPITOL CHATTER
Press releases, news articles, and more
News Article - February 3, 2026 - The Aspen Times Bill expanding Colorado’s ‘red flag’ gun law sails through state Senate, heads to House
News Article - February 2, 2026 - The Colorado Sun If voters let the Colorado legislature tap into TABOR surplus, tax credits may become much more complicated
News Article - February 2, 2026 - Colorado Politics Colorado legislators advance proposal allowing lawsuits against federal immigration agents
News Article - February 2, 2026 - The Colorado Sun Democratic lawmakers plan package of bills to further regulate federal immigration enforcement in Colorado
News Article - February 2, 2026 - Aurora Sentinel Colorado schools fear budget cuts as legislators address funding shortfall
News Article - January 30, 2026 - The Colorado Sun Democratic lawmakers plan package of bills to further regulate federal immigration enforcement in Colorado
News Article - January 30, 2026 - Colorado Politics Colorado House launches ethics review of Rep. Ron Weinberg filed by fellow GOP legislator
News Article - January 28, 2026 - Colorado Public Radio Former Colorado state senator convicted of felonies for fabricating letters amid ethics investigation
News Article - January 25, 2026 - The Denver Post Colorado Democrats float big changes aimed at reforming income taxes and unleashing state spending
News Article - January 24, 2026 - The Denver Post Colorado voters to decide if law enforcement must work with immigration officials
News Article - January 23, 2026 - The Colorado Sun Tax breaks vs. renewable energy o#sets: Democrats plan to duel over conflicting Colorado data center bills
News Article - January 22, 2026 - The Colorado Sun How the Colorado legislature contributed to the state’s budget crisis
News Article - January 22, 2026 - The Aspen Times Colorado governor, Democrats announce package of bills to increase housing supply, bolster transit centers
News Article - January 20, 2026 - The Aspen Times Gov. Jared Polis noncommittal on supporting TABOR change, says Coloradans ‘value’ tax refunds
News Article - January 19, 2026 - Pagosa Daily Post Tribal Leaders Seek More Collaboration with Colorado Legislature
News Article - January 14, 2026 - The Colorado Sun The big bills to watch as Colorado’s 2026 legislative session begins
News Article - January 9, 2026 - Denver Business Journal Pinnacol Assurance seeks break from state control as market share drops
News Article - January 9, 2026 - Colorado Politics Final lap: Gov. Jared Polis outlines his 2026 agenda for Colorado as he nears the end of his term
News Article - January 8, 2026 - The Denver Post Democratic lawmakers will resurrect vetoed labor bill with an eye toward Colorado’s next governor
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