State lawmakers prepare a war chest for Colorado to battle the federal government

CBS News

10-04-2025

After a flood of executive orders, mass firings, funding freezes and trade war -- all in less than three months -- some state lawmakers are setting up a contingency fund in preparation for the next round of whirlwind changes from the Trump administration.
A newly introduced bill would create a $4 million fund in the governor's office to fight "adverse federal action".
Ironically, the money to fight the feds is coming from federal dollars the state received from the Infrastructure and Jobs Act.
"We are moving fast to make sure we are prepared," Speaker of the House Julie McCluskie (D-Col) told CBS Colorado. She's sponsoring the bill with state Congresswoman Shannon Bird (D-Col).
While it's in response to actions already taken by the Trump administration, McCluskie says it isn't about party politics but federal overreach.
"All of us should be all in in protecting money Coloradans sent to the federal government and we now want back for the programming that's so important," McCluskie said.
Federal dollars made up nearly 40% of Colorado's budget last year that included funding for education, transportation and health care. The Trump administration froze more a half billion dollars to the state in January. While court rulings restored much of the funding, Gov. Jared Polis's office says $69.5 million in federal public safety grants remain frozen.
McCluskie worries the administration will try to claw back or block more federal dollars allocated for Colorado.
"This is the way that we protect Coloradans' money -- dollars that have gone to feds that should be coming back to us through these important programs," McCluskie said. "Safety net, education environmental programming, we want these dollars back here to protect the state we love and the people that need these funds."
Colorado is among the states that pays more in federal taxes than we receive in federal funding.
The bill allows the governor to use the $4 million for congressional inquiries and hearings, investigations and lawsuits, legal counsel and contractors, and other expenditures that lawmakers say preserve and protect state sovereignty.
"I was asked by one member why haven't we had this fund before, and should we have it ongoing? Maybe we should," McCluskie said. "This isn't about being Republican or Democrat. This is a vote for Colorado."
McCluskie says the money will also help defend state employees who may be sued for enforcing state laws or policies that conflict with federal laws and policies.
A statement released by the office of Gov. Jared Polis said, "The Trump administration is trying to claw back and withhold funding it legally owes and was directed by Congress to provide to Colorado. This includes bipartisan funding for health care access and public safety. The state is working to safeguard Colorado from adverse federal actions that are being taken every day, and the legal and policy environment remains very fluid. We have seen a significant increase in workload to support Colorado's efforts to safeguard funds and the state's rights, including administrative and legal needs. We believe that to properly defend the free state of Colorado from unlawful and adverse actions taken against the state, protect Coloradans and state employees, and generally prepare for the uncertain federal environment ahead, it's critical to ensure we have adequate resources to meet the moment."