CO HB1274

State agencies may dispense up to 25% of total contract value to nonprofit grantees immediately upon executing or renewing a grant contract, rather than requiring reimbursement-based payments

Grantees receiving upfront payments may only spend funds on expenses directly connected to the relevant contract and must comply with all reporting requirements specified in the contract

Agencies may continue using existing waiver processes through state or federal rules to dispense upfront payments; if the State Controller denies a waiver request, a written explanation must be provided to the agency and shared with the grantee

Agencies already dispensing upfront payments prior to the effective date may continue their existing practices

Effective date: August 12, 2026 (90 days after anticipated adjournment), subject to referendum petition