SB 26-181

Senate Bill 26-181, which has been signed into law, allows counties in Colorado to extend assistance beyond a five-year limit for households that show they have good reasons. It also pauses the annual increase in cash assistance amounts due to cost of living changes for two years starting from 2026. Additionally, the bill removes requirements for minimum reserve balances and replenishment between different funds used to support these programs. This means counties will have more flexibility in providing aid but less automatic financial protection against shortages during those years.

Official Summary

Joint Budget Committee. Where current law requires, the bill now permits counties to offer households that demonstrate good cause an extension of Colorado works program (works program) assistance beyond the 60-month lifetime maximum.     The bill suspends the works program basic cash assistance grant cost of living adjustment during the 2026-27 and 2027-28 state fiscal years.     Current law establishes minimum reserve balances for the total statewide county TANF reserve and the Colorado long-term works reserve (reserves). The bill removes those reserve minimums. The bill eliminates a requirement for each reserve to replenish money in the other under certain conditions and for the general assembly to effectively backfill the balances of both reserves if their balances fall below specified minimums.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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