La Plata County lost about $8 million in federal funding tied to the 2025-26 fiscal year, with some impacts expected to extend beyond that, according to data from the Colorado Governor’s Office of Federal Funds and Strategic Initiatives.
The state database, released Dec. 2, details verified cuts to state-administered programs. Statewide, Colorado has lost roughly $1 billion in federal funding during the current fiscal year. Gov. Jared Polis has attributed a significant portion of that loss to H.R. 1, also known as the “Big Beautiful Bill.”
The $8 million figure is as an estimate intended to capture the scale of reduced federal investment in La Plata County. It includes canceled grants, expired programs that were not renewed and the loss of certain federal social benefits.
While most of the funding flows through state agencies rather than directly to county government, the impacts are expected to be felt locally through higher household costs, reduced assistance programs, and fewer resources available for recovery and prevention efforts.
The largest share of the losses stems from the expiration of federal health insurance supports, including enhanced premium tax credits and reinsurance funding administered through the Colorado Division of Insurance.
Combined, the changes are projected to account for more than $5.7 million in lost support for La Plata County, largely through higher insurance premiums for residents who purchase coverage on the individual market.
“What we all need to understand is there is an ecosystem of health care in Southwest Colorado, and that ecosystem is going to be very strained by people not being able to be insured,” said La Plata County Commissioner Marsha Porter-Norton.
Energy and climate-related programs also accounted for a significant share of the losses. More than $1.7 million tied to the federal Solar for All program was canceled before funds were distributed to La Plata County households, according to the data.
Additional cuts eliminated smaller grants intended to support building performance standards and energy code adoption, programs designed to provide technical assistance to disadvantaged communities.
Several public safety and disaster recovery grants were also affected. Federal Emergency Management Agency public assistance funding related to flooding in Southwest Colorado was denied, eliminating more than $230,000 that would have covered a portion of disaster-related costs.
Polis has appealed the federal government’s decision to deny the FEMA funding, arguing the move unfairly withholds disaster assistance from Colorado. He criticized the president for playing “political games,” and suggested that the denial is tied to a broader dispute with the administration over unrelated political demands.
County officials decried the denial as well, but have also said the loss of FEMA funding is not expected to significantly delay or disrupt flood recovery efforts in the Vallecito area.
Other canceled grants supported homeland security planning and violence prevention efforts. Smaller cuts affected programs tied to food access, agriculture and workforce development, including the expiration of a SNAP nutrition education grant, the termination of climate-smart agriculture and working lands programs administered through the Colorado Department of Agriculture, and the cancellation of digital equity and social security research grants.
Beyond the funding already lost, an additional $6 million in federal funding for La Plata County is at risk of being cut, frozen or terminated, according to the state.
More than half that funding is tied to the Broadband Equity, Access and Deployment program under the U.S. Department of Commerce.
Under Biden’s infrastructure bill, Colorado was awarded $826 million through BEAD to expand high-speed internet statewide and bring reliable broadband access to rural and underserved areas.
That funding was later paused when Trump took office, and after redoing the application, the state received half the original amount. Officials are still trying to get the other $400 million released.
La Plata County was slated to receive nearly $4 million for local broadband expansion, under the rescinded amount, though those funds remain frozen pending further federal review.
County commissioners sent a letter to the secretary of National Telecommunications and Information Administration in December advocating for the funds to be unfrozen, Commissioner Matt Salka said.
Broadband funding is critical for more than faster internet speeds, Salka said. Redundancy remains a key concern, as a single fiber cut could disrupt phone service, internet access and emergency communications across La Plata County and neighboring Archuleta County.
Reliable broadband infrastructure supports emergency response, economic development, medical care and day-to-day communication, he said.
Porter-Norton also pointed to additional potential funding impacts not reflected in the state’s data set, which she said stem from provisions in H.R. 1.
Under the bill, some human services programs, including Medicaid and the Supplemental Nutrition Assistance Program, shift more administrative and financial responsibility to states and counties.
The restructuring is projected to increase administrative burdens, introduce funding uncertainty and could affect the quality and reach of human services across the region, Porter-Norton said. Counties may take on responsibilities previously managed at the state level, placing added pressure on local governments without additional funding.
jbowman@durangoherald.com
