Trump's spending pause creates chaos in Colorado
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The Trump administration's attempt to freeze federal grants and financial assistance programs sparked widespread chaos and spurred a legal challenge from Colorado.
Why it matters: The impact is hard to overestimate, officials said, but it's potentially in the billions of dollars — reverberating through state and local government budgets, local nonprofits and health care providers.
Driving the news: The temporary pause, outlined in a memo from the White House Office of Management and Budget, is designed to give the new administration time to review agency spending.
The latest: But it sowed widespread confusion about its scope. A federal judge late Tuesday temporarily blocked it from taking place.
- The White House clarified it doesn't apply "across the board" nor to Medicaid, student loans or government food vouchers. And it gave federal agencies until Feb. 10 to submit detailed plans.
Yes, but: The statement did little to quell fears or backlash in Colorado.
Attorney General Phil Weiser announced he would join a multi-state lawsuit challenging the administration's order, calling it "reckless and unprecedented."
- "This government funding shutdown is illegal and must be stopped by the courts," he added.
Meanwhile, Gov. Jared Polis' office and legislative budget writers scrambled to assess the potential impact, saying it could affect services for children and other vulnerable populations, as well as necessary road and bridge repairs.
- "Governing is about delivering real results for the people we serve, not sowing chaos," Polis said in a statement, expressing support for the lawsuit.
By the numbers: Colorado is set to receive $13.4 billion from the federal government in fiscal year 2025-26 — about 30% of the state's $40 billion annual budget.
- The bulk — 74% — is earmarked for health care and related safety net programs. It's unclear how many of these are impacted by the order.
Zoom in: Hundreds of millions more go to Denver and surrounding localities for law enforcement and other government programs.
Meanwhile, area hospitals, researchers and nonprofits receive crucial federal aid each year that supports countless jobs in the Denver metro area.
- In 2024, Denver Health, the city's safety net hospital, received $89 million in federal grant funding.
- "Denying critical funding to programs that support the medical and social needs of our patients will have direct impacts on the health and well-being of Coloradans across the state," Denver Health spokesperson Dane Roper said in a statement.
Denver received approximately $100 million in federal dollars in its 2025 budget, primarily through grants.
- Joshua Rosenblum, a spokesperson for Denver's Department of Finance, said that money went toward critical infrastructure improvements, overdose prevention and other areas.
- In one specific example, the Regional Transportation District said it received $150 million from the Federal Transit Administration to help complete the East Colfax rapid transit line.
What they're saying: The reaction from state Rep. Emily Sirota (D-Denver) captured the apprehension at the Capitol after the memo's release.
- "It's an 'Oh my God,'" the state budget writer told Axios. "I think we're all trying to figure out what it means."
Between the lines: Even before the suspension, Colorado budget writers were wary about what's to come from Washington in terms of spending cuts.
- "There are any number of things that can be done that could dramatically change our budget and our ability to serve Coloradans in the way we do," Sirota said.