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HB26-1376 • 2026

Federal Adoption Money Cash Fund Updates

Joint Budget Committee. Current law creates the excess federal Title IV-E reimbursements cash fund (cash fund), which includes federal revenue in excess of the amount required to reimburse certain eli

Children
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Rep. K. Brown, Rep. E. Sirota, Sen. J. Bridges, Sen. B. Kirkmeyer, Rep. R. Taggart, Sen. J. Amabile
Last action
2026-04-14
Official status
Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the Whole
Effective date
Not listed

Plain English Breakdown

The bill summary does not provide details on renaming the fund, but it is implied by the context.

Updating Money Uses in Foster Care Fund

This bill updates how money from a special fund can be used to help children who might enter or stay in foster care.

What This Bill Does

  • Changes the name of the excess federal Title IV-E reimbursements cash fund.
  • Updates how the money in this fund can be spent, following current federal rules.
  • Allows using the fund's money for services that support a positive permanency outcome for children or youth who might otherwise enter or reenter foster care.

Who It Names or Affects

  • Children and youth who may need foster care services.
  • Counties and state departments responsible for child welfare services.

Terms To Know

Title IV-E
A federal program that provides money to states for foster care, adoption assistance, and other related services.
Cash fund
A special account where extra federal money is kept after it has been used for certain expenses.

Limits and Unknowns

  • The bill does not specify how much money will be in the cash fund.
  • It's unclear what specific services can now use the fund's money beyond supporting positive permanency outcomes for children.

Bill History

  1. 2026-04-14 Senate

    Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the Whole

  2. 2026-04-13 Senate

    Introduced In Senate - Assigned to Appropriations

  3. 2026-04-11 House

    House Third Reading Passed - No Amendments

  4. 2026-04-10 House

    House Third Reading Laid Over Daily - No Amendments

  5. 2026-04-09 House

    House Second Reading Special Order - Passed - No Amendments

  6. 2026-04-08 House

    House Second Reading Special Order - Laid Over Daily - No Amendments

  7. 2026-04-06 House

    House Committee on Appropriations Refer Unamended to House Committee of the Whole

  8. 2026-04-02 House

    Introduced In House - Assigned to Appropriations

Official Summary Text

Joint Budget Committee.
Current law creates the excess federal Title IV-E reimbursements cash fund (cash fund), which includes federal revenue in excess of the amount required to reimburse certain eligible foster care, prevention, and permanency services. The bill renames the fund and updates the permissible uses of the money in the cash fund to align with current federal requirements, which permit the state to apply savings associated with federal funding increases to a range of child welfare services. The bill specifically authorizes the use of cash fund money for services to support a positive permanency outcome for a child or youth who might otherwise enter or reenter foster care.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Current Bill Text

Read the full stored bill text
Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 26-0924.01 Anna Petrini x5497 HOUSE BILL 26-1376
House Committees Senate Committees
Appropriations
A BILL FOR AN ACT
CONCERNING UPDATING PERMISSIBLE USES OF MONEY IN THE EXCESS101
FEDERAL TITLE IV-E REIMBURSEMENTS CASH FUND.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov/.)
Joint Budget Committee. Current law creates the excess federal
Title IV-E reimbursements cash fund (cash fund), which includes federal
revenue in excess of the amount required to reimburse certain eligible
foster care, prevention, and permanency services. The bill renames the
fund and updates the permissible uses of the money in the cash fund to
align with current federal requirements, which permit the state to apply
HOUSE
3rd Reading Unamended
April 11, 2026
HOUSE
2nd Reading Unamended
April 9, 2026
HOUSE SPONSORSHIP
Brown and Sirota, Taggart,
SENATE SPONSORSHIP
Bridges and Kirkmeyer, Amabile
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
savings associated with federal funding increases to a range of child
welfare services. The bill specifically authorizes the use of cash fund
money for services to support a positive permanency outcome for a child
or youth who might otherwise enter or reenter foster care.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 26-1-111, amend2
(2)(d)(II)(C) as follows:3
26-1-111. Activities of the state departme nt under the4
supervision of the executive director - cash fund - report - rules -5
statewide adoption resource registry.6
(2) The state department, under the supervision of the executive7
director, shall:8
(d) (II) (C) For fiscal year 2003-04 and each fiscal year, thereafter9
after the amounts described in subsections (2)(d)(II)(A) and (2)(d)(II)(B)10
of this section are set aside, the total amount of money remaining shall be11
transmitted to the state treasurer, who shall credit the same MONEY to the12
excess federal Title IV-E reimbursements cash fund, which fund is hereby13
IS created IN THE STATE TREASURY and referred to in this subsection14
(2)(d)(II)(C) as the "fund". The money in the fund is subject to annual15
appropriation by the general assembly to the state department. for16
allocation to counties to help defray the costs of performing17
administrative functions related to obtaining federal reimbursement18
money available under the Title IV-E program. In addition, the general19
assembly may annually appropriate money in the fund to the department20
of early childhood for allocation to the counties for the provision of child21
care assistance, as described in section 26.5-4-105, and to the state22
department for allocation to the counties for the provision of assistance,23
1376-2-
as defined in section 26-2-703 (2); social services, as defined in section1
26-2-103 (11); and child welfare services, as defined in section 26-5-1012
(3). For fiscal year 2004-05, and in subsequent years if so specified by the3
general assembly in the annual appropriations act, the counties shall4
expend the money allocated by the department of early childhood for the5
provision of child care assistance and by the state department for the6
provision of assistance, social services, and child welfare services7
pursuant to this subsection (2)(d)(II)(C) in a manner that will be applied8
toward the state's maintenance of historic effort as specified in section9
409 (a)(7) of the federal "Social Security Act", as amended. FOR STATE10
FISCAL YEAR 2026- 27, AND EACH FISCAL YEAR THEREAFTER, THE MONEY11
IN THE FUND MUST BE USED IN ACCORDANCE WITH SECTION 473 (a)(8) OF12
THE FEDERAL "SOCIAL SECURITY ACT", 42 U.S.C. SEC . 673 (a)(8).13
PERMISSIBLE USES OF THE MONEY IN THE FUND INCLUDE14
POST-PERMANENCY SERVICES TO SUPPORT AND SUSTAIN POSITIVE ,15
PERMANENT OUTCOMES FOR A CHILD OR YOUTH WHO MIGHT OTHERWISE16
ENTER OR REENTER FOSTER CARE. Any money in the fund not expended17
for the purposes specified in this subsection (2)(d)(II)(C) may be invested18
by the state treasurer as provided by law. The state treasurer shall credit19
all interest and income derived from the investment and deposit of money20
in the fund to the fund. Any une xpended and unencumbered money21
remaining in the fund at the end of a fiscal year remains in the fund and22
is not credited or transferred or DOES NOT revert to the general fund or23
another fund.24
SECTION 2. Safety clause. The general assembly finds,25
determines, and declares that this act is necessary for the immediate26
preservation of the public peace, health, or safety or for appropriations for27
1376-3-
the support and maintenance of the departments of the state and state1
institutions.2
1376-4-