Tariffs Continue to Harm Economy, Job Growth, and Consumer Spending, Colorado Maintains Hea

Impacts of H.R.1 reduce revenue and will turn off money saving tax credits for Coloradans

DENVER - Today, the Governor's Office of State Planning and Budgeting presented its December Economic Forecast to the Joint Budget Committee.

"The White House's destructive trade wars continue to hurt our economy, skyrocket costs, and worsen inflation ahead of the holidays. Despite this, we are maintaining a healthy reserve to secure Colorado's fiscal future," said Governor Polis.

Due to federal tax policy changes signed into law by President Trump in H.R.1, revenue is expected to drop below the TABOR cap in FY 2025-26. As a result of lower revenue growth, the Family Affordability Tax Credit (FATC) and the Earned Income Tax Credit (EITC) expansion are now turned off for tax year 2026, which Coloradans file for in early 2027. OSPB estimates Colorado will have TABOR surpluses of $208.2 million and $581.1 million in FY 2026-27 and 2027-28 respectively.

View the forecast, slides and supplemental materials.

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