HB 26-1274 heads to Governor Polis after broad support to help nonprofits launch services faster and reduce financial strain

May 13, 2026

DENVER – House Bill 26-1274: State Agency Payments to Grant Recipients officially passed the Colorado General Assembly with bipartisan support and now heads to Governor Jared Polis for his signature, marking a major step forward in modernizing how Colorado partners with nonprofit organizations delivering essential public services.

The bill allows – but does not require – state agencies to provide a portion of grant funding in advance to nonprofit organizations awarded state grants. Currently, most state grants operate on a reimbursement basis, requiring nonprofits to front program costs and wait weeks or months for payment.

Supporters say the change will help reduce financial strain on nonprofits, particularly small and community-rooted organizations, and help ensure services can begin on time without disruptions to communities.

“Across Colorado, nonprofit organizations are delivering critical services every day – from food assistance and housing support to public health programs and community outreach – often while carrying the financial burden of waiting for reimbursement,” said Marco Dorado, Managing Director of Communities Lead Communities Thrive. “The bipartisan passage of HB 26-1274 reflects a growing recognition that nonprofits are essential partners in serving Colorado communities and that our funding systems should support, not hinder, that work. This bill gives agencies additional flexibility to better support their nonprofit partners while maintaining accountability and oversight.”

Communities Lead Communities Thrive (CLCT) and nonprofit partners across the state advocated for the legislation as part of the coalition’s broader Funding the Frontlines Policy Agenda, which was developed through listening sessions with nonprofit leaders across Colorado in summer and fall 2025. 

During those conversations, organizations consistently identified reimbursement delays and the lack of upfront funding as major barriers to delivering state-funded programs, particularly for smaller, community-rooted nonprofits. HB 26-1274 reflects those experiences and advances CLCT’s ongoing efforts to improve nonprofit access to state funding and strengthen partnerships between government and community organizations.

The bill now heads to Governor Jared Polis for his signature. For more information, visit www.coclct.org.

###