This bill expands how Colorado’s IIJA Cash Fund may be used and allocates funding to support state-level responses to federal government actions, including legal and administrative support.
Key Provisions
1. New Allowable Uses of the IIJA Cash Fund
Authorizes the Office of the Governor to use the fund for new purposes, even if not directly tied to infrastructure.
These new uses include:
(a) Personnel & Contractors
Hiring staff or contractors for matters related to federal actions that could impact:
Federal disbursements
Grants
Contracts
Federal funds Colorado receives
(b) Legal Support via Special Assistant Attorneys General
Covers legal costs to:
Defend state officers or employees against federal investigations or lawsuits (e.g., congressional inquiries).
Provide criminal defense for state officials when sued or prosecuted for actions taken in an official capacity.
(c) Other Discretionary Uses by the Governor
Supports actions the Governor deems necessary to:
Preserve state sovereignty
Protect or maintain federal funding streams into the state
2. Gifts, Grants, and Donations Allowed
Allows the Office to seek and accept funding from public or private sources to support the new legal and administrative uses described above.
3. Appropriation for FY 2025-26
$4,000,000 is appropriated to the Office of the Governor for use under this expanded authority.
4. Sunset Clause
The section repeals on July 1, 2028.
Any leftover funds will revert to the General Fund.
Impact
This bill equips the Governor’s Office with flexibility and funding to respond to federal actions that may threaten state control or finances.
It ensures the state can retain legal counsel and protect funding or officials as needed.
Summary
The bill appropriates $4 million from the Infrastructure
Investment and Jobs Act cash fund (fund) to the office of the governor (office) for state fiscal year 2025-26, with roll-forward authority in state fiscal year 2026-27 for any money remaining in the fund after state fiscal year 2025-26. The bill authorizes the office to accept gifts, grants, or donations for crediting to the fund to implement the bill.
Money in the fund may be used by the office in the governor's
discretion to hire and employ personnel or retain contractors for purposes related to federal government actions that impact federal disbursements, grants, contracts, or money received by or transferred to the state. The office may also reimburse the department of law for costs associated with special assistant attorneys general who are contracted for the purposes of providing legal services:
•
To state officers or employees related to legal proceedings, inquiries, hearings, or investigations initiated, pursued, or threatened by the federal government; or
•
For the criminal defense of state officers or employees in legal actions arising out of their official acts or decisions.
The office may also incur other expenditures covered by the fund
that are consistent with the purposes of the bill, as determined by the governor, including expenditures to preserve and protect state sovereignty or federal funding streams that benefit the state.
