Colorado and The American Rescue Plan
With the $3.8 billion of state aid provided by the American Rescue Plan Act (Fiscal Recovery Funds), the Governor and Colorado legislature are rolling out the roadmap of investments designed to power the Colorado Comeback.
A top priority for the state aid provided by the American Rescue Plan Act will be to shore up the state budget for the near term through a series of budget integrity measures, so as the Coloradans are recovering from this global pandemic, the state can avoid cuts to critical state services such as funding for K-12 schools, higher education, existing mental and behavioral and physical health programs, and the ongoing public health response to COVID-19. That’s why a full third or $1.3 billion of the federal relief funds will be invested in ensuring budget integrity for the next several years.
Of the $3.8 billion in federal funds:
$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
Colorado expects to spend $2 billion of the state’s total $3.8 billion in federal funds this legislative session. An estimated $1.8 billion in federal funds will remain for deployment at the beginning of the next legislative session following an Interim stakeholder process, enabling resources to be targeted to changing needs in the economy that may evolve in the coming months.
“We must seize this once in a generation opportunity to use state stimulus funds to invigorate our economy and help our state recover faster and stronger, while at the same time making critical investments that will better our state for future generations of Coloradans,” said Governor Jared Polis. “And now, we have an opportunity to build on those investments with federal dollars from the American Rescue Plan Act. This package is the product of a truly collaborative effort from the federal to the state and local levels, and will power the Colorado comeback.”
Colorado residents also qualify for health insurance rates that are now much lower!
This is due to substantial new subsidies from the Federal Government. Even people who were not eligible in the past are now saving thousands a year.
A 40-year-old couple with two children and an annual income of $78,600, would see their monthly subsidized premium for an average benchmark Silver plan decrease from $644 to $393, for an annual savings of $3,010.
A 60-year-old married couple with an annual income of $78,390, would be newly eligible for subsidies. Their monthly premium for an average benchmark Silver plan would decrease from $1,920 to $555, for an annual savings of $16,377.