Colorado lawmakers confronted an $850 million budget shortfall this week while Democrats introduced legislation stripping federal immigration officers of immunity protections and eliminating local zoning control for housing projects. Legislative Council Staff projects deficits between $691.9 million and $783.1 million through 2027, while documented fraud and waste across state agencies totals more than $555 million. Senate Bill 26-005 strips immunity from federal officers and creates civil liability for enforcing immigration law, while House Bill 1001 allows schools, nonprofits, and transit districts to bypass local approval for housing developments. The Colorado Court of Appeals questioned whether Tina Peters received an unconstitutional sentence, and federal energy orders forced rural cooperatives to pay up to $150 million annually for a coal plant.
Immigration Policy
Senate Bill 26-005 strips immunity protections from federal officers and creates civil liability for enforcing immigration law. The bill guarantees attorney fees to plaintiffs.
Attorney General Phil Weiser prosecuted Mesa County Deputy Alexander Zwinck for sharing information with federal officials during a traffic stop. Drug Enforcement Administration officials said Mexican cartel members call Colorado “un santuario”—a sanctuary—when explaining trafficking routes.
Colorado seized 6.7 million fentanyl pills in 2025, accounting for 14 percent of national seizures despite having just 1.7 percent of the population. Denver fentanyl deaths jumped 25 percent while national deaths declined 28 percent.
Housing Legislation
House Bill 1001 allows schools, nonprofits, and transit districts to bypass local approval for housing projects up to three stories or 45 feet tall on properties of five acres or more.
The Colorado Municipal League opposed the measure, stating it “undermines the rights of local communities to make decisions for themselves.”
Budget Crisis
Documented fraud and waste across agencies totals more than $555 million. Colorado paid $73 million in fraudulent unemployment benefits, including $3.9 million to dead people and $5 million to prisoners. The Department of Transportation paid $158.7 million for work on expired contracts.
Governor Jared Polis delivered his State of State address January 15, celebrating tax credit programs his office had eliminated December 19. The Family Affordability Tax Credit and Earned Income Tax Credit were terminated when revenue fell below TABOR caps.
Peters Appeal
The Colorado Court of Appeals questioned whether Tina Peters received an unconstitutional sentence. Judge Craig Welling told prosecutors the court cannot punish her for First Amendment rights.
The panel dismissed broader dismissal arguments but focused on sentencing issues and a jury instruction error. Peters remains at La Vista Correctional Facility while awaiting the ruling.
Secretary of State Jena Griswold released her third letter urging Governor Polis to reject clemency one day before Peters’ hearing and five months before Griswold’s Attorney General primary.
Energy Mandate
Federal orders forced Craig Station Unit 1 to remain operational through March 2026 despite a December 19 mechanical failure. Rural electric cooperative members will pay between $85 million and $150 million annually.
Tri-State Generation and Transmission CEO Duane Highley said the membership will bear compliance costs unless costs can be shared regionally. The North American Electric Reliability Corporation found no reliability risks in the region.
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