Colorado tumbles to No. 25 in CNBC's business rankings
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Colorado fell 14 spots to No. 25 in CNBC's annual Top States for Business rankings, released Thursday.
Why it matters: The state's sharp drop in CNBC's closely watched business rankings is likely to intensify debate over whether Democratic-led policies have hurt its appeal to employers.
The big picture: Colorado lost ground in business friendliness, cost of living, workforce, economy, infrastructure and access to capital — slipping from No. 11 last year.
- CNBC scores all 50 states across 10 weighted categories worth 2,500 points total. Colorado earned 1,315 points.
Zoom in: Infrastructure was deemed Colorado's biggest weakness. The state fell from 11th to 32nd in that category after CNBC made it the most heavily weighted measure for 2026.
- CNBC said it elevated infrastructure to reflect companies' interest in being close to transit hubs, utilities and data centers.
Colorado's brightest spot was technology and innovation, where it earned an A-minus — its only grade above a B-minus. Its score for cost of doing business remained unchanged year over year.
State of play: For years, business leaders have argued that Democratic lawmakers have made the state less competitive by approving regulations that raise employers' costs.
- During this year's legislative session, business groups successfully defeated or weakened several proposals they said would further undermine Colorado's business climate, including measures involving labor rules and corporate tax breaks.
- And the issue is increasingly top of mind for local leaders. Earlier Thursday, Denver Mayor Mike Johnston unveiled a $100 million jobs strategy aimed at attracting employers and strengthening the workforce.
What they're saying: Eric Maruyama, a spokesperson for Gov. Jared Polis' office, said it's "no surprise" Colorado's No. 49 ranking in housing affordability dragged down the state's overall standing, arguing that building more housing would boost the state's economy.
- Denver Metro Chamber of Commerce president and CEO J.J. Ament told Axios the CNBC rankings reflect "poor policy choices" that have eroded Colorado's competitiveness. "The good news" is the state's next governor and legislature can reverse the trend, he said.
Zoom out: Ohio claimed CNBC's top spot this year, followed by North Carolina, Virginia, Texas and Minnesota.