Colorado Capitol Clash Erupts Over Nonprofits Receiving Advanced Taxpayer Funds

By Sherrie Peif | Complete Colorado

DENVER – GOP opposition to a bill passed in the final hours of the 2026 Colorado legislative session around tax dollars going to non-profits stirred up a pot of anger and controversy among Democrat legislators tied to organizations that stood to benefit. So much so that one state senator pledged to pursue restriction next session prohibiting sitting lawmakers from profiting on taxpayer’s money.

House Bill 26-1274, sponsored by Democrat Representatives Monica Duran from Jefferson County and Mandy Lindsay from Arapahoe County and carried in the Senate by Democrats Katie Wallace of Boulder and Mike Weissman of Adams County, changed the way non-profits can collect a portion of state grant money in the future.

But amendments offered in the Senate by Byron Pelton (R-Sterling), caused Sen. Julie Gonzales (D-Denver) to lash out at both Pelton and Sen. Barbara Kirkmeyer (D-Brighton) on the Senate floor. Her criticism initially worked, as 13 of her colleagues – many of whom also work for non-profits — voted against an amendment that would not allow sitting legislators or their family members to benefit from the bill.

The background

Currently, when a non-profit in Colorado is awarded state-funded grant money, the organization must ask for reimbursement after the expenditures the grant supports are made. However, HB-1274, changed that so that non-profits can now ask for an advance on up to 25 percent of the funding immediately following execution of the contract.

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