Federal benefits cuts are looming – here’s how Colorado is trying to protect families with children

Colorado's Family Affordability Tax Credit, implemented in tax year 2024, is projected to reduce child poverty in the state by approximately 20%. This credit offers up to $3,200 per child under age 6 and $2,400 per child aged 6 to 16, and is fully refundable. However, due to changes in federal legislation reducing state revenue projections, the credit has been suspended for 2026, meaning it may not be part of families’ 2027 tax refunds. This suspension occurs as federal changes to SNAP and Medicaid, requiring 80 hours of work per month for most working-age adults, are projected to cause 298,000 Colorado families to lose SNAP benefits and 154,000 to lose Medicaid coverage. Researchers estimate that if Colorado's design were implemented nationwide, child poverty could be reduced by over one-third.