2025 Colorado Legislative Session Recap
Advancing policy that improves economic mobility for Coloradans was, as always, our overarching goal during the 2025 legislative session. However, a more than $1 billion budget shortfall forced lawmakers into a defensive posture when it came to spending, meaning that very few bills with price tags could pass. The funding just wasn’t there, and the constraints of TABOR make everything around our state budget more difficult.
Also casting a pall over the session were the nonstop news alerts out of Washington D.C. about imminent cuts to critical social services, unconstitutional immigration crackdowns, destruction of LGBTQ+ rights, evisceration of consumer protections and much more.
Despite these constraints, Colorado lawmakers ultimately passed some laudable bills. And while they were able to close the budget deficit, trying very hard to do the least damage to the most vulnerable, it seems increasingly likely they will be called back to the Capitol for a special session to figure out how to balance the books if the much talked-about deep federal cuts come to pass.
- To review all of the important bills that headed through the Colorado General Assembly during the 2025 session, view our 2025 Legislative Session Bill Tracker.
Fiscal Policy
Wins: Coming into the 2025 legislative session, it was projected that Colorado would have to cut up to $1 billion in the state budget because of structural issues caused by TABOR. That number grew to $1.2 billion by the time the budget was drafted in late March. However, the legislature was able to preserve K-12 education funding and even increase Medicaid provider rates and funding for higher education. It was an impressive feat of budget writing, but tough times are still ahead, and without real structural changes, next year will bring significant funding challenges that will undoubtedly have to touch core programs like education and healthcare.
There were also bills that the Bell helped to defeat that would have made our future budget problems even worse, including a bill to gradually eliminate the state income tax – a tax that makes up about three-fifths of our General Fund budget. Finally, the Bell helped pass through committee a bill that would have challenged the constitutionality of TABOR. While it did not make it through the full legislature, it is clear there is an appetite for reform and ensuring that the wealthy pay their fair share to support our state – something that is not possible with TABOR in our constitution.
Future Work: What became clear this session – if it wasn’t abundantly clear before – is that we do not have the dollars in our state budget to serve the needs of the people of Colorado. Studies were delivered to the legislature showing that we are underfunding the K-12 education system by $3-4 billion. Our child care system is severely lacking in funds. On top of all of this, the state is looking at more cuts to balance next year’s budget. The only solution in front of us that would let us deal with these problems is significant reform that would bring more revenue into our system. Ensuring that the wealthiest Coloradans pay their fair share while ensuring more funding for core priorities for Coloradans is getting more urgent by the day, and the Bell will continue working to make that a political reality.
Consumer Protection & Lending
Wins: One of the major themes of this session was dealing with the rising cost of living that is causing economic pain for many Coloradans. As a result, there was a suite of legislation that addressed how to put guardrails around corporate power and ensure a level playing field for all businesses and consumers. One bill mandated transparency around “junk” fees, and will help small businesses compete with bigger businesses and give consumers certainty around the cost of their lease and purchase of goods and services. Another piece of legislation made sure that businesses cannot unreasonably increase the cost of goods, like milk and eggs, during disasters so that prices remain affordable for Coloradans. A bill to ensure that landlords cannot collude by using non-public data to increase the price of rents failed last year, but came back this year and passed. Also, the House and Senate Judiciary Committees held a hearing featuring the former General Counsel of the Consumer Financial Protection Bureau, Seth Frotman, and the illegally fired Commissioner of the Federal Trade Commission, Alvaro Bedoya, to explore these issues and others. Their testimonies helped show the importance of keeping corporate power in check so Coloradans can afford necessities.
There was also discussion during the legislative session around lending. The Bell Policy Center has long been on the forefront of curbing predatory lending, and seeking ways to expand lending products that do not trap people in cycles of debt. However, there are always new types of lending products – whether they call themselves lenders or not – that pop up, especially as technology evolves. Earned Wage Access, a product that enables consumers to pay a fee to get an advance on their paycheck, is a new financial product and some companies were seeking to write their own regulations on how it can function in Colorado. The Bell worked with partners to ensure that legislators understood how the product truly functions, and ultimately the bill failed. We look forward to engaging with the legislature in the future to ensure that any new financial products are properly regulated and do not harm Coloradans.
Future Work: As mentioned above, the Bell stands vigilant against new financial products that put Coloradans in harm’s way. We will continue working with the Colorado Attorney General, community members, legislators, and other advocates to provide proper frameworks to ensure that lending products are available to all, and do not have high interest rates or trap people in cycles of debt. Furthermore, we will continue to work to ensure that algorithmic discrimination does not flourish in our state. While a bill to ensure that algorithms do not reduce wages for workers or increase prices for consumers did not pass, we will continue to work to ensure that new technology helps workers and consumers, not burden them and reduce their earning power.
Caring Economy
Wins: We were pleased to be part of a coalition that worked to pass a bill that makes important strides in strengthening the caring economy, HB25-1328, a bill to implement recommendations from the Direct Care Stabilization Board. It will improve the working conditions by establishing the “know your rights” training for workers and creating a communication platform to connect workers to resources and people in need of care. In addition, it codifies the minimum wage for direct care workers at $17 an hour, encourages the state to increase the minimum wage to $25 an hour by 2028, and directs the board to look into providing healthcare benefits to direct care workers. For families, SB25-004, Regulating Child Care Center Fees, ensures transparency around child care waitlist fees, and their refundability, if the family is not accepted into the child care program.
Future Work: Despite these wins, work remains to adequately support the caring workforce and provide quality, affordable care. Unfortunately, HB25-1011, Private Equity Acquisition of Child Care Centers, which would have required transparency and implemented guardrails for private equity firms that acquire child care centers, did not pass. This proactive bill passed both the house and senate committees but lost on the senate floor by two votes. Additionally, while the above-mentioned wins for direct care workers is critical to improving recruitment and retention in the field, continued and increased investment is still needed to support care workers, families, and people who receive care across the lifespan.
Housing
Wins: Housing remained a key issue for lawmakers in 2025, with over 25 housing-related bills introduced, continuing the trend of recent years as Colorado grapples with a persistent housing crisis. Affordable housing is fundamental to economic mobility, from keeping rents within reach to providing pathways to homeownership. The Bell approached this session focused on expanding investments in affordable housing, protecting renters, and enabling more affordable housing production amid a tight state budget and looming federal cuts to housing assistance programs.
Given fiscal constraints, lawmakers explored creative investment models. For example, SB25-167 creates a community investment portfolio within the Public School Fund, managed by the Colorado Housing Finance Authority, to finance affordable rental and homeownership opportunities for the education workforce, like teachers, school nurses, and counselors.
Given the work done over the past several years to reduce property taxes, it was essential that legislators also work to address issues related to tenants and rental affordability. As mentioned, a bill to prohibit landlords from colluding to fix rent using algorithmic pricing software passed through the legislature this year. This bill was especially important as the practice was found to increase Denver metro rents by about $136 a month. HB25-1168 and HB25-1240 expand housing protections for survivors of interpersonal violence and tenants using housing subsidies, respectively.
Future Work: While the 2025 session saw meaningful gains in renter protections, investment tools, and housing production standards, the need still far outpaces available resources. Proposition 123 funds, particularly those dollars set aside for homelessness support, will likely be stretched, and federal housing cuts will only exacerbate gaps in funding. Homeownership remains out of reach for too many, and lower- and middle-income renters continue to shoulder disproportionate cost burdens.
Additionally, state-local tensions continue to impede policy alignment. The failure of HB25-1032 and HB25-1169, coupled with local government pushback on land use reforms, highlights the fragmentation of housing governance in Colorado. To meet the scale of the housing crisis, stronger collaboration between state agencies, local leaders, and housing advocates is essential, especially as Colorado confronts federal instability and ongoing state budget shortfalls.
In the future, efforts to diversify funding sources, align zoning and development incentives, and center housing solutions around community needs will be critical for ensuring that every Coloradan can access a safe, stable, and affordable place to call home.
Immigration
Wins: The Bell worked with our partners at Colorado Immigrants Rights Coalition, the Colorado’s People’s Alliance, and Movimiento Poder, among many others, to help pass a bill to ensure Colorado protects the civil and constitutional rights of all of its residents – including immigrants without documentation. Immigrants of many different backgrounds contribute greatly to Colorado and its economy. With the actions from the federal government affecting this community greatly, it was absolutely crucial for us to stand with our friends and partners advocating for the civil rights of all Coloradans.
Future Work: Those who support the current federal government have been working to put anti-immigration measures on to the 2026 statewide ballot. The Bell will continue working with partners in this space to ensure that Colorado is a welcoming place for all people.
