Colorado, like all states, has a unique early childhood policy landscape that is shaped by economics, demographics, political history, coalitions, and other factors that create a state-specific environment for policy advocacy.
State early childhood policy progress is dependent both on the state’s environment and the numerous efforts—by the organizations listed on this page, other organizations, parents, policymakers, practitioners, and more—who work both independently and collaboratively to achieve wins for young children.
Research shows that family economic security is foundational to children’s overall wellbeing. Research also shows that widespread disparities in opportunity (especially by race) drive wide disparities in outcomes. States with policies that offer strong support to young children and their families are more likely to see 1) declining numbers of children in low-income households and 2) low racial disparity among those children.
Young Children in Low-Income Households: Declining
Approximately 30 percent (165,000) of the state’s children 0-8 live in households below 200 percent FPL (2022). This number represents a decrease from 33 percent (197,000) in 2017.1
Racial Disparity Among Young Children Living in Low-Income Households: High
Black, Hispanic/Latino, and/or Native children aged 0-8 are significantly more likely to be living in households below 200 percent FPL than are Asian and non-Hispanic White children.2
State General Fund Appropriations: Growing
Colorado’s governor signed the state’s fiscal 2026 budget bill into law in April of 2025. According to the Long Bill Narrative released by the Joint Budget Committee, the budget includes $46.53 billion in operating appropriations from all funds and $16.92 billion in general fund operating appropriations. This represents a 3.5 percent increase in total fund spending and a 7.1 percent increase in general fund spending over fiscal 2025 levels. After accounting for rebates and other expenditure adjustments, transportation and capital projects, and transfers and diversions, general fund spending obligations total $18.05 billion, a decrease of $351 million from fiscal 2025. The enacted budget leaves an ending balance in the General Fund Reserve of $2.4 billion. The budget is based on a gross general fund revenue forecast of $18.0 billion for fiscal 2025.3
Key Revenue Sources (after federal transfers):4
Charges are public payments connected with a specific government service, such as tuition paid to a state university, payments to a public hospital, or highway tolls.
State Budget Rules:4
Permanent State Funding Stream Dedicated to Early Childhood: Yes
Colorado earmarks excess collected nicotine tax revenues for free preschool for 4-year-olds statewide. An earlier successful ballot measure raised the nicotine tax to fund a variety of health and education programs, including universal preschool, however the state constitution requires the state to either refund excess tax revenue or seek voter approval to retain it. In 2023, Colorado voted to retain the excess and dedicate it to universal pre-k. (Colorado also recently repealed a state ban on local tobacco taxes.)
In addition, Colorado state law allows local voters to create special local taxing districts called Early Childhood Development Special Districts that dedicate their revenue to funding services for children birth through 8. Once created, the districts can seek voter approval to levy property taxes and sales and use taxes in the district to generate revenues to provide early childhood development services.5
Political Alignment: Aligned Democrat
During the legislative session, the state’s Senate and House were both Democrat controlled. The state’s Governor was also a Democrat.6
Types of Common Ballot Measures Available:7 Six
Early Childhood Policy Advocacy Organizations Include:
Early Childhood Policy Advocacy Multi-State Initiatives Include:8
A Colorado coalition of advocates is working with Child Care NEXT funding on a sustained effort to pursue bold transformation for the state’s child-care ecosystem.
Highlights from the state’s early childhood policy advocacy community include:9
Colorado became the first state to extend paid leave to parents of newborns who require a stay in a neo-natal intensive care unit. Colorado’s FAMLI program is fully state managed public good and SB 25-144, both decreased the premium rate for employees and employers and beginning on Jan 1, 2026, will cover a day for day up to 12 weeks per parent time job protected paid leave time for NICU stays. Parents remain eligible for bonding leave, up to another 12 weeks within the first year of the child’s birth for a potential total of 24 weeks. Colorado’s paid leave program is a self-supporting enterprise based on fees collected from premiums the policy change is expected to cost 15.9 million across FY25/26. Program estimates about 10% of infants born in CO will require a NICU stay, and the average length of stay is 14 days.
HB 25-1279, titled State Level Data for Colorado Works Program, requires the Department of Human Services to develop a standardized process for the state and counties to collect and report data on the Temporary Assistance for Needy Families program (TANF, known in the state as Colorado Works), including how funds are spent and the impact of recent policy changes.The bill also requires the Department of Human Services to develop recommendations for standardized outcome measures and evidence levels for services provided through contracts using TANF funds. Finally, this bill requires the Department of Human Services to submit a report with information related to updating eligibility requirements for basic cash assistance in the TANF program. Advocates support this bill because Colorado lacks clear, comprehensive, state-level data for large portions of the TANF program. Better data will enable Colorado to understand how TANF funds are spent, know whether the funds are being maximized to serve eligible families, and identify exemplar uses of TANF funds across the state.
SB25-004 Regulates Child Care Center Fees The bill limits childcare wait list fees and application fees for families, and it requires the deposited fee to be applied to tuition. It also requires all child care providers to proactively and clearly post all fees charged above tuition. Advocates believe the bill strikes a balance between allowing providers to cover the administrative costs of maintaining wait lists and processing applications and reducing additional barriers for families accessing childcare. The bill will also give parents clearer information on costs when navigating the childcare selection process. Clayton Early Learning as a Head Start and Early Head Start program does not charge fees and monitored this bill once it was introduced.
The legislature approved a funding increase for the Universal Preschool Program that will increase provider rates, support Local Coordinating Organizations, and expand capacity to meet growing demand for the program. This win resulted in an additional $6.8 million for the Colorado Universal Preschool Program. These funds will be used for provider increases, increases for local coordination, and additional preschool slots. The budget also increased state funding for the Colorado Child Care Assistance Program (CCCAP). This $21.7 million addition to the Colorado Child Care Assistance Program will help increase provider payments, but falls short of what is needed to keep Colorado’s program fully functioning.
Cover All Coloradans provides Medicaid services to children and pregnant adults living in Colorado, regardless of their immigration status. This program went into effect on January 1, 2025 and was a target for cuts throughout the 2025 legislative session. Advocates worked to ensure implementation and increase funding for the program as enrollment soared beyond our expectation. Implementation and budget protection for Cover All Coloradans was a major win this session
Colorado received an 1115 waiver to allow for continuous eligibility for Medicaid for children 0-3 beginning on January 1, 2026. During the 2025 legislative session, the state faced a $1.2 billion budget deficit. One strategy for cutting the budget was to eliminate programs that had not yet been implemented. Advocates were able to protect funding for continuous eligibility, citing long-term savings for the state in addition to strengthening child wellbeing. Unfortunately, in the summer of 2025, the Centers for Medicare an Medicaid Services (CMS) announced it would not be renewing or approving any new 1115 waivers, so Colorado was forced to stop its planned implementation for January 1, 2026.
The Family Affordability Tax Credit is a refundable, means-tested tax credit providing up to $3,200 per child under 6 and $2,400 per child aged 6 to 16 for eligible families. Legislation protected this vital credit, which is projected to make Colorado’s child poverty rate the lowest in the country and 40% lower than the second-lowest state. Additionally, this bill protected Colorado’s state Earned Income Tax Credit, ensuring families receive the credit in 2025.
Our lead allies in Colorado are Clayton Early Learning and the nonprofit, non partisan, research, policy, and advocacy organization Colorado Children’s Campaign. Clayton prepares young children for school through family-centered classrooms and home-based practices, research/program evaluation, and professional development. The Colorado Children’s Campaign is a policy, advocacy and research organization that partners with an extensive statewide network of child advocates and serves as the leading voice for kids at the state capitol. The two organizations partner closely with a wide array of advocates to advance well-being for children throughout the state.
They are working to advance early childhood policies in several areas:
Preschool and Pre-K
Child Care
Child Care Workforce
Maternal Health
Infant & Child Health
Family Economic Security
Early Childhood Governance
Click here for more information on advocates’ policy agenda.
Advocates in the state’s Growing Our Future coalition have won their fight for the Family Affordability Tax Credit, which will put more money into the hands of families and help cut the child poverty rate in Colorado in half.
NOTES:
1 Kids Count Data Center, Annie E. Casey Foundation, Children Ages 0 to 8 Below 200 Percent Poverty, January, 2024.
2 National Center for Children in Poverty, Children Ages 0 through 8 Below 200 Percent Poverty, October 2024, NCCP analysis of ACS 5-Year Estimates – Public Use Microdata Sample 2018-2022.
3 National Association of State Budget Officers, Proposed and Enacted Budgets, FY 2026.
4 Urban Institute, State Fiscal Briefs, April 2025.
5 Alliance for Early Success, State Examples of Dedicated Funding Streams, 2025
6 National Conference of State Legislatures, 2025 State & Legislative Partisan Composition, January 31, 2025.
7 Ballotpedia, Ballot Measures by State, Kids Count Data Center, 2025.
8 Alliance for Early Success, Multi-State Initiatives for Early Childhood Policy Advocacy, July, 2024.
9 Alliance for Early Success, State-Wide Advocacy Highlights Survey, April-October, 2025.
