Concerning the repeal of the pay for success contracts program.
Summary
HB26-1361 repeals Colorado’s state pay for success contracts program. Under current law, the Office of Economic Development administers the program by entering into agreements with lead contractors to provide eligible interventions, and it uses money in the pay for success contracts fund and a related youth pay for success initiatives account to make payments and cover administrative costs. The bill ends that structure by directing the state treasurer to transfer all remaining money in the fund and account to the general fund on June 30, 2026, and by repealing the program, fund, and account effective July 1, 2026.
The measure is primarily a cleanup and termination bill for an existing financing and contracting mechanism rather than a new policy initiative. It removes statutory authority for the Office of Economic Development to continue operating the pay for success program and eliminates the dedicated funding streams associated with it, while preserving the state’s ability to move any remaining balances into the general fund before repeal takes effect.
Impact
This bill amends Colorado Revised Statutes section 24-37-403 to add a mandatory transfer of all money in the pay for success contracts fund and the youth pay for success initiatives account to the general fund and to repeal the section establishing the program. As a result, the Office of Economic Development will no longer have statutory authority to administer pay for success contracts, and any remaining program funds will be consolidated into the general fund. The bill affects the state treasury, the Office of Economic Development, and any contractors or agencies that might have participated in or received funding through the program, including the Department of Human Services for any related administrative expenditures.
Sentiment
The available record suggests little overt controversy around the bill. It advanced through the Appropriations process and was ultimately signed by the governor, which indicates broad enough support for ending the program and redirecting remaining funds. The absence of recorded committee testimony or vote detail limits insight into specific debate, but the final action suggests the bill was treated as a routine fiscal or program-repeal measure rather than a highly contested policy change.
Contention
The main point of potential contention is the elimination of a dedicated program and its associated funding sources. Supporters likely viewed the repeal as an appropriate consolidation of unused or unnecessary funds into the general fund and a way to sunset an existing program structure. Any opposition would most likely come from stakeholders connected to pay for success contracting, social-service intervention funding, or the agencies that had used the account for administrative and project expenses, because the bill ends future use of those dedicated monies and removes the statutory framework for the program.