Governor Polis Signs Laws, Takes Executive Action to Fix the Billion Dollar Budget Hole Created by Trump and Congressional Republicans

On August 28th, the Governor issued an executive order to outline budget cuts he is implementing to balance the current year state budget. Due to the passage of HR 1, the state budget is almost a billion dollars out of balance. The Governor and legislature worked together to pass various measures during the August 2025 special session to help balance the budget. However, the Governor had to make additional cuts via executive order. There are several cuts that impact psychologists who are Medicaid providers as well as mental health. Below is a list of those cuts:

  • Fifty four million nine hundred forty thousand eight hundred fifty six dollars ($54,940,856) appropriated for Medical Services Premiums from the General Fund is suspended and not available for expenditure.
    • Reversion of the 1.6% provider rate increase that was effective as of July 1, 2025. It will be phased out starting in October.
    • Implements pre and post claim review of all pediatric autism behavioral therapy codes.
    • Adjusts the pediatric behavioral therapy rates to 95% of the benchmark on updated, current average rates.
    • Reduces payments to providers and RAEs for meeting performance outcomes for behavioral health.
    • Reinstate prior authorization to align utilization with best practices for outpatient psychotherapy services.
  • Sixteen million one hundred twenty thousand eight hundred ten dollars ($16,120,810) appropriated for Behavioral Health Capitation Payments from the General Fund is suspended and not available for expenditure.
  • Three million dollars ($3,000,000) appropriated for Children’s Extensive Support Services from the General Fund is suspended and not available for expenditure.
  • Five hundred thousand dollars ($500,000) appropriated for Screening, Brief Intervention, and Referral to Treatment Training Grant Program from the Marijuana Tax Cash Fund is suspended and not available for expenditure.
  • Two hundred one thousand eight hundred forty three dollars ($201,843) appropriated for Mental Health Institute at Fort Logan Personal Services from the General Fund is suspended and not available for expenditure.
  • One million five hundred seven thousand five hundred twelve dollars ($1,507,512) appropriated for Mental Health Institute at Pueblo Personal Services from the General Fund is suspended and not available for expenditure.

You can access the Governor’s letter to the Joint Budget Committee as well for a thorough review of all the cuts outlined above.