Congress will return from recess the first week of September. The primary focus will be to avoid a government shutdown on October 1st. Democratic leaders are indicating their objective is to reverse Medicaid cuts.

2026 Federal Funding:

The Senate Appropriations Committee has advanced an appropriations bill for child care and early learning funding. The bill would increase funding for Head Start and the Child Care and Development Block Grant, and would maintain funding for the Preschool Development Birth Through Five (PDG B-5) Grant.

Exclusion of Undocumented Children from Federal Programs:

A number of federal programs such as Head Start, WIC, and CACFP have recently been included on lists of programs that will exclude undocumented children. Colorado and 19 other states sued the federal government and there is now a temporary pause on enforcement of this policy. Over 580,000 comments were submitted to the Department of Health and Human Services to oppose this decision. The stay of enforcement ends on September 10th.

Reconciliation Bill Updates:

The reconciliation package was passed on July 4th.

The bill will have long-term effects on children and families. This bill has the potential to:

• Increase child poverty and hunger. The estimated number of children in Colorado impacted by Child Tax Credit exclusions is over 93,000. Over 33,000 children could lose SNAP benefits.
• Decimate health care coverage. Medicaid will be cut by nearly $1 trillion over ten years in this bill. Medicaid covers over 500,000 children in Colorado and 44% of births. Children are the largest group covered by Medicaid in Colorado.
• Deport children and cause family separation. The total number of children in Colorado who could be impacted by ICE action is over 93,000.

Not all families will be impacted by the bill equally. The bill would raise costs for low-income and working-class families by thousands of dollars a year through increased costs for healthcare, food, and energy bills. Wealthy families on the other hand would benefit from significant tax cuts.

Click here for a timeline of effective dates.

Medicaid Cuts

What we know:

• The federal government is cutting Medicaid by nearly $1 trillion, resulting in millions losing coverage
• 2 out of 5 rural children in Colorado receive coverage through Medicaid (Health First Colorado)
• 1 out of 3 children in urban areas have coverage through Medicaid
• 50% of children with special healthcare needs rely on Medicaid
• 1 in 4 child care workers are covered by Medicaid

Medicaid benefits for children include:

• Better educational outcomes: more likely to graduate high school and college
• Better economic outcomes: higher earnings and productivity as an adult
• Better health outcomes for their entire life

Medicaid is also a critical support for the early childhood workforce. Milestones board member Annie Lee shares more about the impact of Medicaid cuts for Coloradans.

Health Effects of Immigration Policy Change

Family detention, family member deportation, family separation, anti-immigrant harassment, and any interaction with the immigration system are considered adverse childhood experiences. That means they can impact the development of a child for life. The effects of these policies impact children regardless of the immigration status of the child.

In Colorado, 67,000 children are at risk of a parent being deported.

Effects for children include:

• Chronic fear of the arrest of a loved one, leading to toxic stress
• Social and educational disruptions
• Delayed brain development
• Behavior challenges

Learn more here.

What is Economic Mobility?

Economic mobility is a family’s capacity to attain higher income levels over several generations. You can learn more about economic mobility in our recent brief.

The federal government receives a long-term return of $10 for every $1 invested in children. Federal programs helped to cut poverty in half between 1967 and 2012. They contributed to improved health, increased education levels, and a better labor market. Less than 9% of all federal spending goes towards children.

In Colorado:

• 579,000: Children are covered by Medicaid. That’s 39% of all children in Colorado.

• 47,000: Kids receive Temporary Assistance for Needy Families (TANF) 

• 317,000: Kids receive Supplemental Nutrition Assistance Program (SNAP) 

• 11,100: Children are in Head Start and Early Head Start 

Federal cuts to these programs would impact the educational, health, and economic outcomes of thousands of Colorado kids for years to come.

Do you want to know how much federal funding Colorado receives for programs that support children and families? Use this tracker to learn more.

Tariffs

Since April 1, families have spent an average of $400 more on baby supplies due to the tariffs. The most common baby items such as stroller, cribs, and car seats, have increased in price by 24%.