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Colorado Legislature Wraps 2025 Session with Balanced Budget and Key Reforms

Lawmakers addressed a $1 billion shortfall, passed measures on housing, labor, and consumer protections, and created a fund to counter federal actions.

Colorado House Speaker Julie McCluskie, front left, hugs Gov. Jared Polis at a news conference where they reflected on the 2025 legislative session, which concluded Wednesday,  in front of West Holden Place Modular Housing in Denver on Thursday, May 8, 2025.  Polis signed Senate Bill 2, which is aimed at making it easier to construct factory-built structures. (Photo by Hyoung Chang/The Denver Post)
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Overview

  • The Colorado Legislature concluded its 2025 session, balancing a $1 billion deficit while advancing affordability, safety, and economic growth initiatives.
  • House Bill 1321 established a $4 million Colorado Defense Fund to safeguard state interests from adverse federal actions, such as lawsuits.
  • House Bill 1272 reformed construction-defect laws, aiming to boost the development of condominiums and starter homes across the state.
  • Democrats passed labor-focused measures, including wage-theft protections and pay raises for home care workers, while consumer protections addressed price gouging, hospital funding, and subscription cancellations.
  • Gov. Jared Polis plans to veto Senate Bill 005, which would repeal union dues election requirements, citing the lack of a durable compromise.