HB 22-1259: Colorado Works Program Modifications

• Increases basic cash assistance grants for Colorado Works participants, requiring the state to ensure benefits equal at least 100% of the 2021 amount plus 10% by July 1, 2024, with annual 2% cost-of-living adjustments thereafter.

• Reduces sanctions by capping first-time sanctions at no more than $1 and establishes earned income disregards with gradual step-downs to reduce the "cliff effect" that discourages work.

• Allows extensions beyond the 60-month lifetime benefit limit for good cause, including single parents with children under one year old and households experiencing defined hardship, with rules due by July 1, 2023.

• Establishes exemptions from work requirements for good cause and requires counties to offer equal access to TANF services for those exempted who wish to participate voluntarily.

• Creates outreach and engagement plan with multilingual resources, participant voice in program decisions, and exit interviews to evaluate participant experiences and gather data on program effectiveness, with annual reporting beginning January 2023.