Photo: Senate Majority Leader Robert Rodriguez (left) speaks with Sens. Lisa Cutter and Jeff Bridges on the Senate floor in the Colorado Capitol on August 24, 2025. (Photo by Sara Wilson)
This story by Sara Wilson appeared on Colorado Newsline on August 26, 2025.
The Colorado Legislature has finished a special session to find ways to raise revenue to soften the blow of a $1.2 billion budget deficit caused by federal tax code changes.
The Senate adjourned around 2:30pm on Tuesday, August 26, and the House ended work about an hour later.
Over the past six days, lawmakers debated and passed a series of bills to close tax exemptions for businesses and increase revenue by selling deferred tax credits. In total, the bills passed will generate about $350 million this fiscal year.
On Thursday, Governor Jared Polis plans to present a spending cut plan to the Joint Budget Committee. He has executive authority to slash state costs during certain economic conditions, and a special session bill requires more collaboration and consultation with the JBC on those cuts. The state will dip into its reserves to make up the remainder of the deficit.
The Legislature also passed bills to allow the state to reimburse Medicaid costs for Planned Parenthood, inject more money into a fund for health insurance affordability and add the state’s nutrition assistance program into a beneficiary of a planned November ballot measure.
The House also passed a resolution to condemn the behavior of former Rep. Ryan Armagost when he shared a photo of a Democratic colleague and set off a viral social media harassment campaign.
What didn’t happen during the special session: a plan on how to change the state’s artificial intelligence law to satisfy consumer groups, technology interests and businesses. Instead, lawmakers extended the start date of the law until June 30, 2026 to give more time for negotiations.
Lawmakers will reconvene for the regular session next January.
Colorado Newsline is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Colorado Newsline maintains editorial independence. Contact Editor Quentin Young for questions: info@coloradonewsline.com.