Federal Failure to Rein in Trump on Tariffs and Renew Enhanced Premium Tax Credits Will Raise Costs on Hardworking People

DENVER - Governor Polis is calling on Congress and the Trump Administration to stop punishing the American people, pass a balanced budget, and end the current shutdown. Congressional Republicans' refusal to negotiate over the Enhanced Premium Tax Credits (EPTCs) - an initiative that makes health insurance affordable for more than 24 million Americans - will cost hard working families, communities, and the economy billions.

"From H.R.1, which strips people of their health care and drives up the deficit, to the President's costly tariff taxes, and now allowing a federal shutdown, the majority in Washington is hurting hardworking Coloradans," said Governor Polis. "We saw during the last federal shutdown how billions of dollars in economic activity were lost, workers went without paychecks, and businesses never fully recovered their potential income. Now Congress is once again playing chicken with livelihoods by risking health care, jobs, and economic security. It's time for Congress and the Administration to pass a balanced budget like we do every year here in Colorado, and stop punishing hardworking families and individuals."

Since June, Governor Polis has been urging Colorado's federal delegation to work toward extending the Enhanced Earned Premium Tax Credits (EPTCs). Without action from Congress to extend these tax credits, nearly 250,000 Coloradans will face premium increases ranging from 114% to as much as 300%, and as many as 75,000 Coloradans could lose their health insurance altogether. In August - during the Special Session convened to address the billion-dollar state budget deficit created by congressional Republicans' passage of H.R.1 - Governor Polis worked with the legislature to pass HB25B-1006 to strengthen Colorado's reinsurance initiative and blunt premium hikes. In early September, Governor Polis and Lt. Governor Primavera sent a letter to Colorado's congressional delegation urging them to extend the EPTC to protect the health and financial stability of Colorado families. That same day, Governor Polis convened local leaders in Grand Junction to discuss the tax credit and its impact on local businesses, their employees, and rural communities which will see some of the highest premium increases. On September 15, Governor Polis joined a group of governors from across the country in a letter to congressional leaders underscoring the national stakes. That letter, led by Delaware Governor Matt Meyer, was supported by the governors of California, Connecticut, Illinois, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Washington, and Wisconsin. In September, Governor Polis convened a second roundtable on the tax credit with leaders in Colorado Springs. With insurers reaching the deadline for setting their 2025-2026 rates before open enrollment begins on November 1, Congress would need to extend these tax credits immediately to prevent these rate hikes.

Additionally, a federal shutdown would negatively impact some of the largest drivers of Colorado's rural economies by closing the National Parks. In September and October 2024, Colorado's National Parks and Monuments welcomed an estimated 1.66 million visitor days. Similar to "skier days," this figure reflects the total number of daily visits across the state's parks and monuments. Rocky Mountain National Park alone saw 75% of Colorado's park-related tourists, and October accounts for 10% of annual visits. In 2023, Governor Polis issued an Executive Order directing the Colorado Department of Natural Resources (DNR) to develop a plan for continued operations and resource protection of Colorado's National Parks and other federal lands in the event of a federal government shutdown. As a result of this Executive Order, DNR, in partnership with the Colorado Department of Public Safety, the Office of Economic Development and International Trade, and the Department of Local Affairs, have identified several options to keep the park open and protected on a short-term basis. This is not a long-term solution, and a federal shutdown will significantly impact Colorado's recreation revenue.

"We're urging the Federal government to keep our national parks open and staffed, or create avenues for the state to assist in keeping parks open and protected. Rocky Mountain National Park is a major draw for visitors from around the world, especially now during leaf-peeping season, and a major economic driver for Colorado's rural communities If Congress does not fund the federal government, it limits our ability to maintain the parks operations and will close them off for everyone to enjoy, ultimately hurting our economy, and visitors," said Governor Jared Polis.

Although state-run initiatives are unlikely to face immediate, widespread disruptions, some federally funded initiatives are already being affected. For example, the USDA's Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) has lapsed. To prevent Colorado families from losing access to these benefits, Governor Polis submitted an emergency supplemental budget request on September 22 to the Joint Budget Committee, which approved one month of stopgap funding from the state's General Fund. While the state was able to step in for WIC, it cannot provide backfill for every federal initiative and a long-term Congressional solution is required to solve this funding setback.

During the last government shutdown, the Congressional Budget Office estimated that $18 billion in federal spending was delayed, GDP fell by $8 billion in the first quarter of 2019, and at least $3 billion in economic activity was permanently lost. In Colorado, thousands of federal employees were furloughed or required to work without pay while federal contractors were additionally at risk of losing income given that the same guarantees on backpay do not exist for contractors. Even a pause on pay would likely begin temporarily impacting consumer spending in the state in October, negatively impacting business sales and the broader economy.

###