Works Program Reserves & Cost of Living Adjustment

Current law requires counties to offer Colorado works program (works program) applicants and participants that demonstrate good cause an extension beyond the 60-month lifetime maximum. Good cause includes an applicant or participant who is a child-only case, who is the head of a single parent household unit and has a child less than one year old, or who is experiencing hardship. The act makes the extension permissible rather than a requirement and removes an applicant or participant who is a child-only case or experiencing hardship from the good cause determination.

The act suspends the works program basic cash assistance grant cost of living adjustment during the 2026-27 and 2027-28 state fiscal years. Current law establishes minimum reserve balances for the total statewide county temporary assistance for needy families (TANF) reserve and the Colorado long-term works reserve (reserves). The act removes those reserve minimums.

The act eliminates a requirement for each reserve to replenish money in the other under certain conditions and for the general assembly to effectively backfill the balances of both reserves if their balances fall below specified minimums.(Note: This summary applies to this bill as enacted.)