This bill will reconcile how Colorado used federal American Rescue Plan Act (ARPA) funds and state refinancing funds by adjusting transfers, updating appropriations, and ensuring compliance with federal spending deadlines.
Background on ARPA and State Refinancing
Colorado received federal COVID relief funds under the ARPA of 2021.
These funds were:
Deposited into the ARPA cash fund
Transferred to various “recipient funds” and appropriated to specific programs
In 2024, HB24-1466 used state money to refinance (i.e., replace) some of the ARPA-funded projects, freeing up federal dollars for other uses.
New Transfers and Adjustments in This Bill
Transfers ARPA money back into recipient funds to cover project costs that were previously refinanced.
Transfers unused state refinance moneyout of recipient funds and returns it to the General Fund.
Adjusts existing budget line items and program statutes to match the actual use and movement of money.
Federal Spending Requirements and Reclassification
ARPA money must be:
Obligated by Dec. 31, 2024
Spent by Dec. 31, 2026
Federal law allows states to reclassify obligated-but-unspent funds after 2024 if certain “qualifying events” occur (e.g., project cancellation).
This bill allows:
Reversion of ARPA funds back to the main ARPA fund if a qualifying event occurs.
Re-appropriation of those funds to the Governor’s Office for alternative eligible projects (substituting for General Fund appropriations).
Repeal of Health Workforce Recruitment Program
Ends the requirement for CDPHE to run a healthcare workforce recruitment/re-engagement program.
Reason: Funding for this program is being terminated, so the statutory requirement is no longer needed.
Overall Effect
Cleans up and reconciles how Colorado handled its federal pandemic relief funds and state matching funds.
Ensures compliance with federal rules and deadlines for ARPA spending.
Returns unspent state dollars to the General Fund.
Eliminates outdated programs that are no longer funded.
Summary
Joint Budget Committee. The state received money from the
federal coronavirus state fiscal recovery fund pursuant to the American Rescue Plan Act of 2021 (ARPA money). ARPA money was deposited into the American Rescue Plan Act of 2021 cash fund, transferred to various other cash funds (recipient funds), and appropriated from recipient funds for various programs. House Bill 24-1466, enacted in 2024, refinanced appropriated ARPA money with state money (state refinance money).
The bill transfers ARPA money to recipient funds to cover the
costs of projects funded with ARPA money and transfers unspent state refinance money from recipient funds to the general fund. The bill adjusts existing appropriations to reflect spent ARPA money and unspent state refinance money and amends program statutes to align with the appropriations adjustments.
ARPA money must be obligated by December 31, 2024, and spent
by December 31, 2026. Under federal law, as explained in guidance from the United States department of the treasury, the state may reclassify obligated but unspent ARPA money after December 31, 2024, upon the occurrence of certain events (qualifying events). The bill reverts money upon a qualifying event from the recipient fund to the American Rescue Plan Act of 2021 cash fund and appropriates that money to the governor for an alternate eligible use for which a general fund appropriation was made. Under existing law, the general fund appropriation is reduced by the amount of ARPA money spent for the line item of appropriation.
The bill repeals the requirement for the department of public health
and environment to engage in recruitment and re-engagement of workers in the health-care profession because the bill ends the appropriation of money for that purpose.
