Colorado’s 2026 legislative session is poised to be dominated by continued budget deficits, sweeping affordability debates, and focus on housing, energy, and artificial intelligence. With Governor Jared Polis in his final year, and a big election looming in November, the stakes and political tensions around the Capitol will be important to watch this year. The session convened on Wednesday, January 14, 2026, and can run up to 120 days, through mid-May. An estimated 150 bills will be introduced in the first week of session – The Greater Arvada Chamber of Commerce will be working to provide timely updates on key legislation and bill positions.
From a policy perspective, many of the same challenges from the 2025 session are returning: tight budgets, pressure on business, and a long list of complex bills. With the November election looming, Governor Jared Polis enters his legacy year, and shifting leadership dynamics within both parties is creating a political environment that is more unpredictable than usual. Jeff Weist (Weist Capitol Group), lobbyist for The Chamber, joined the January Advocacy KAPS Council meeting to share his insights and predictions for the upcoming legislative session. Below is a high-level look at what to expect, and key areas the Chamber will focus on this session.
The Budget Will Dominate Everything
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The single most important piece of the 2026 session is Colorado’s structural budget deficit. This year marks the third consecutive year lawmakers will need to cut roughly $1 billion from the state budget.
Medicaid will be at the center of budget conversations. It now represents the largest share of the state budget (surpassing education), driven by rising utilization and costs. As a result, any bill with a fiscal note will face steep odds.
These pressures are also reshaping how lawmakers approach policy. Instead of traditional regulation, the legislature is increasingly turning to new legal liability regimes, a trend that could have significant implications for businesses across sectors.
Affordability is the Unifying (and Divisive) Theme
Affordability is the one issue everyone agrees on. Lawmakers across parties acknowledge that Coloradans are facing a real affordability crisis. Most of the affordability conversations have been in housing, but is rapidly expanding to prices more broadly. Where consensus breaks down is on solutions.
Progressive lawmakers are increasingly viewing lawsuits and liability against businesses as tools to rein in prices. It is likely we will expect bills that scrutinize:
- What data and data systems companies are allowed to use when determining prices
- How businesses set prices
- When and where prices can differ (online vs. in-person, third-party platforms)
Housing, Insurance, and Local Control
Housing legislation will continue to be a major focus, though the emphasis is shifting. After years of construction-defects debates, the legislature is moving more into land-use and density policy.
Early information suggest:
- Continued landlord-tenant legislation, including a proposal to limit rent increases to CPI, which could affect housing supply
- New efforts to reduce local control over zoning and density decisions
- A vacancy tax proposal that would allow cities and counties to propose a tax on vacant residential properties based on voter approval
Homeowners and auto insurance are also drawing attention, as premiums continue to rise across the state. Expect bills that place more obligations on insurance companies, particularly from more progressive legislators.
Energy, Environment, and the Governor’s Legacy
Energy and climate policy will be central to Governor Polis’s legacy year agenda.
Colorado’s statewide goal of net-zero carbon emissions by 2050 remains intact, but lawmakers are expected to accelerate interim targets after last year’s failed push to move the initiative to 2040.
Key developments to watch:
- Increased authority of the Public Utilities Commission (PUC) over economic development impacts
- A high-stakes sunset review of the PUC itself
- Continued sector-by-sector emissions policies
Data centers are also back in the spotlight, with competing bills running from new incentives to outright restrictions on large energy users that are not solar powered.
AI and Tech Policy Uncertainty
Colorado’s landmark Artificial Intelligence (AI) nondiscrimination law is set to take effect in June 2026, and remains deeply controversial. Despite many interim efforts, lawmakers have been unable to agree on solutions to concerns for this legislation. Tech companies, small businesses, labor unions, and AI developers all want different outcomes.
Complicating matters further is a recent federal executive order asserting preemption over state AI laws. While its legality is unclear, it has not cooled legislative efforts. AI will remain a live topic this session regardless of federal government efforts.
Taxes, Fees, and TABOR Pressures
Budget constraints are pushing lawmakers to test the limits of TABOR more aggressively. Through the session, we are likely to see:
- More fees and enterprise structures
- Continued elimination of tax deductions and business incentives
- Renewed debates over the balance between revenue needs and economic competitiveness
One notable exception: the Governor’s Office of Economic Development and International Trade will likely push to extend the Job Growth Incentive Tax Credit, which supports companies that expand in or relocate to Colorado.
The controversial credit card swipe fee bill is also expected to return. This legislation was divisive as business industry leaders saw themselves on opposite sides of the bill.
What Comes Next
Bills officially began introducing on January 14, with roughly 150 expected within the first few days. A familiar sprint that ebbs and flows through the next 120 days. Stakeholders across business, local government, and the nonprofit sectors are encouraged to stay engaged early, and prepare for a fast-moving, high-stakes year at the Capitol.
The Greater Arvada Chamber’s Advocacy Initiative is dedicated to fostering a healthy business environment through the promotion of business-friendly policies.
- By joining the Advocacy Network, you can stay informed on initiative progress, receive updates on key legislation this session, and learn about opportunities to engage or even provide testimony.
- The Chamber’s 2026 Policy Pillars serve as a framework for evaluating and determining positions on legislation, which are shared publicly through the Chamber’s Bill Tracker.
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