Colorado oversight of federal grants

• Federalism
• Terms and definitions
• Laws
• Court cases
• Major arguments
• State responses to federal mandates
• State survey of the federal grant review process
  • State responses to the federal grant review process survey, 2021
  • State responses by question to the federal grant review process survey, 2021
• Federalism by the numbers
  • Federalism by the numbers: Federal mandates
  • Federalism by the numbers: Federal grants-in-aid
  • Federalism by the numbers: Federal information collection requests
  • Overview of federal spending during the coronavirus (COVID-19) pandemic
• Index of articles

Federal grants make up a significant portion of state budgets, providing funding for programs in health care, education, infrastructure, and public assistance. These funds are typically accompanied by policy conditions or reporting requirements that shape how states implement federally funded programs. In response, states have developed varying oversight systems to review, approve, and monitor federal funding.

This page summarizes federal grant funding and oversight in Colorado. It includes data on how federal dollars contribute to the state budget, highlights Colorado’s position relative to other states, and analyzes key laws related to grant coordination, transparency, and accountability. This research was last updated in September 2025.

HIGHLIGHTS

In fiscal year 2023, 36.0% of Colorado’s total state revenue came from intergovernmental sources—primarily federal grants—the 22nd-lowest rank nationwide. The state received approximately $15.1 billion in federal funds.

Colorado law authorized the Office of State Planning and Budgeting, with the governor’s approval, to receive and administer federal funds; required the General Assembly to appropriate block grant moneys and directed agencies to submit annual grant reports to the Joint Budget Committee; and assigned the Colorado Auditor to conduct postaudits and the State Controller to report annually on federal fund expenditures.

This article includes information about the following topics:

• Federal funding to Colorado
  • Percentage of Colorado budget funded by the federal government
  • Amount of federal grants to Colorado

• Colorado statutes on federal grant oversight
  • Executive oversight of federal grants
  • Legislative oversight and transparency
  • Audit and financial oversight
  • Agency oversight of federal grants

Background

Federal grants are a major source of funding for state governments, supporting programs in areas such as health care, education, transportation, and public assistance. These funds are distributed through a variety of mechanisms—including block grants, categorical grants, and formula-based programs—and are typically accompanied by policy conditions, reporting requirements, or other administrative mandates.

Federal grants are reported as part of a state’s intergovernmental revenue, a category tracked annually by the United States Census Bureau. Intergovernmental revenue includes funds transferred from both federal and local governments, but federal sources account for the vast majority. In 2022, approximately 98% of intergovernmental revenue received by states came from the federal government. In 2023—the most recent year for which data is available—states collectively received about $1.12 trillion in intergovernmental revenue, representing 36.7% of all general revenue.

Because of the scale and conditional nature of federal funding, many states have adopted statutory and administrative frameworks to oversee how agencies apply for, accept, and manage federal grants. These frameworks reflect broader federalism concerns—such as how states balance fiscal dependence with administrative autonomy, and how they respond to federal mandates that may influence state policy priorities.

This research was last updated in July 2025.

Top federal funding programs to states

In fiscal year 2023, the federal government distributed over $1 trillion in grants to states. The largest programs included Medicaid, highway funding, rental assistance, and child nutrition. Medicaid alone accounted for 56.8% of federal grants to states, and the top 20 programs combined made up approximately 87.8% of total federal grant outlays to states.

Federal funding to Colorado

Amount of federal grants to Colorado

In 2023, Colorado received approximately $15.1 billion in intergovernmental revenue out of a total $41.9billion in state revenue, the 22nd-lowest nationwide. The national average was approximately $22.3 billion per state. Across all states, intergovernmental revenue totaled about $1.12 trillion out of $3.04 trillion in general revenue. In 2022, approximately 98% of intergovernmental revenue states received came from the federal government.

Percentage of Colorado budget funded by the federal government

In fiscal year 2023, 36% of Colorado’s total state revenue came from intergovernmental sources—primarily federal grants—compared to 36.7% for state governments nationwide. Colorado had the 22nd-lowest percentage of state revenue funded by the federal government.

Intergovernmental revenue by state

This table shows the percentage and amount of each state's total revenue that came from intergovernmental sources—primarily federal grants—in fiscal year 2023. It lists states in descending order by the share of revenue from these sources and includes total state revenue, intergovernmental revenue, and the percentage for each state. The data highlights how dependent each state is on federal funding as a portion of its overall budget.

Intergovernmental revenue by state, 2023

State	Total revenue (thousands)	Intergovernmental revenue (thousands)	Percent
Louisiana	$44,396,718	$22,899,720	51.6%
Arizona	$60,891,976	$29,948,016	49.2%
Missouri	$45,073,525	$20,888,653	46.3%
Wyoming	$8,357,625	$3,792,590	45.4%
Alaska	$11,883,137	$5,341,732	45.0%
Montana	$10,689,677	$4,710,013	44.1%
Kentucky	$46,180,553	$20,254,290	43.9%
Mississippi	$26,046,854	$11,310,571	43.4%
Rhode Island	$12,286,091	$5,288,136	43.0%
Oklahoma	$37,833,350	$16,255,253	43.0%
West Virginia	$18,871,691	$8,025,296	42.5%
Tennessee	$48,344,600	$20,223,947	41.8%
South Dakota	$6,278,267	$2,570,818	40.9%
Arkansas	$29,702,938	$12,104,414	40.8%
Georgia	$70,031,565	$28,344,731	40.5%
Indiana	$62,196,503	$25,102,743	40.4%
Alabama	$44,884,391	$17,879,389	39.8%
Maine	$13,604,269	$5,360,431	39.4%
New Hampshire	$10,340,297	$4,052,066	39.2%
South Carolina	$46,113,727	$17,785,656	38.6%
Nebraska	$15,493,777	$5,972,778	38.5%
Texas	$213,481,319	$82,164,797	38.5%
Pennsylvania	$127,986,754	$49,211,832	38.5%
Ohio	$98,348,911	$37,785,734	38.4%
Florida	$141,946,520	$53,706,466	37.8%
New York	$259,552,404	$96,814,839	37.3%
Michigan	$90,192,191	$33,060,736	36.7%
Vermont	$9,063,120	$3,293,531	36.3%
Colorado	$41,909,412	$15,138,043	36.1%
Maryland	$58,597,846	$21,004,254	35.8%
North Carolina	$81,064,214	$28,814,153	35.5%
Oregon	$51,612,303	$17,510,543	33.9%
New Mexico	$40,359,510	$13,628,893	33.8%
Nevada	$24,219,218	$8,040,101	33.2%
Iowa	$31,265,753	$10,333,642	33.1%
Washington	$74,164,396	$24,480,102	33.0%
California	$417,100,727	$137,666,813	33.0%
Minnesota	$60,090,592	$19,468,582	32.4%
Illinois	$111,409,197	$35,838,931	32.2%
Wisconsin	$49,805,740	$15,984,042	32.1%
Massachusetts	$80,850,200	$25,519,880	31.6%
New Jersey	$100,285,531	$31,191,180	31.1%
Connecticut	$38,016,037	$11,800,021	31.0%
Idaho	$14,453,559	$4,456,686	30.8%
Delaware	$13,462,717	$4,105,552	30.5%
Virginia	$81,975,174	$23,958,775	29.2%
North Dakota	$10,349,350	$2,876,346	27.8%
Utah	$31,293,027	$8,603,744	27.5%
Kansas	$27,507,628	$7,524,382	27.4%
Hawaii	$19,221,682	$5,057,226	26.3%

Source: U.S. Census Bureau, Annual Survey of State Government Finances

Colorado statutes on federal grant oversight

Many states have statutory provisions that govern the oversight, approval, transparency, and auditing of federal grants received within the state. These laws typically assign responsibilities to executive agencies, the governor’s office, and the legislature to ensure proper management and accountability of federal funds. This research was last updated in September 2025.

Executive oversight of federal grants

Executive oversight of federal grants refers to statutes that assign responsibility to the governor’s office to review, approve, coordinate, or manage federal grants across the state.

Colorado § 24-37-104 authorized the Office of State Planning and Budgeting, with the governor’s approval, to receive and expend federal funds and to enter agreements necessary to secure such aid.

“ The office, with the approval of the governor, is specifically empowered to receive and expend all grants, gifts, and bequests, where such grants, gifts, or bequests involve no state funds for acquisition, construction, or operation, including federal funds available for the purposes for which the office exists, and to contract with the United States and all other legal entities with respect thereto. The office may provide, where such funds are specifically appropriated, matching funds wherever funds, grants, gifts, bequests, and contractual assistance are available on such basis. The office shall provide such information, reports, and services as may be necessary to secure such financial aid. ”

Legislative oversight and transparency

Legislative oversight and transparency refers to statutes requiring reports to or involvement from the legislature in managing or approving federal grants.

Colorado § 24-76-101 assigned an oversight role to the General Assembly. This statute required block grant moneys received by the state to be subject to legislative appropriation and prohibited disbursement without such approval.

“ 1) The general assembly may appropriate block grant moneys in the state treasury received from any agency of the federal government, and, if so appropriated, such block grant moneys shall not be disbursed except in accordance with the appropriation. This section shall be construed so as to authorize legislative appropriation of block grant moneys, notwithstanding any other provision of law enacted prior to July 1, 1985, which authorizes any department, agency, institution, or officer of the state to apply for, receive, and expend moneys from the federal government without reference to legislative appropriation. (2) As used in this article, "block grant moneys" means moneys received for use in a broad functional area as provided by federal law, and concerning which the state has discretion as to the specific programs to be funded, or as to the level at which such programs will be funded, or as to eligibility requirements or other criteria for identifying the beneficiaries of programs, or as to the transfer of moneys to another block grant, or as to two or more such matters. "Block grant moneys" includes all such moneys in the state treasury, even if they will be passed through to local governments, private nonprofit agencies, or other entities for expenditure. (3) The following federal moneys shall not be appropriated: (a) Moneys received from the federal government by the state for the construction, improvement, or maintenance of highways; (b) Moneys received from the federal government by the state as grants for research at institutions of higher education. (4) Whenever any federal law permits the transfer of block grant moneys from one block grant to another, such moneys shall not be transferred and expended unless such transfer is authorized by the general assembly, either by appropriation or by permanent law. (5) Nothing in this section shall be construed to affect the functions of any advisory committee or advisory council which has been established to make recommendations with regard to block grant moneys. ”

Colorado § 24-75-1303 assigned an oversight role to state agencies reporting to the Joint Budget Committee. This statute required agencies to submit annual reports on all grants funding programs created by legislative enactments, including grant sources, amounts, duration, program purpose, and sustainability plans.

“ (1) On or before November 1, 2011, and on or before November 1 of each year thereafter, each state agency shall submit to the joint budget committee of the general assembly a report, in accordance with generally accepted accounting principles, of all grants made to the state agency during the immediately preceding state fiscal year, which grants provided funding for a bill enacted by the general assembly that relies entirely on grant moneys for the funding source of the program, service, study, interim committee, or other governmental function required by the bill. The state agency shall be prepared to review the report at the state agency's briefing with the joint budget committee in connection with its annual budget request. (2) In compiling the report required pursuant to subsection (1) of this section, the state agency may use the documentation provided by the entity awarding the grant pursuant to section 24-75-1302. (3) The report required pursuant to subsection (1) of this section must include the following information for every grant received: (a) The source of the grant; (b) The amount of money that the state agency receives through the grant on an annual basis and the number of years that the state agency will receive such grant moneys; and (c) The specific program that the grant is intended to support, including the bill number of the bill that created the program. (4) In addition to the information specified in subsection (3) of this section, a state agency shall include in the report a statement of the state agency's intent regarding the sustainability of each program or service that is funded entirely by grant moneys in the event that grant moneys are no longer available to support the program or service in the future. If the state agency intends to continue the program or service after grant moneys are no longer available, the state agency shall include a statement regarding how the program or service will be funded. (5) Nothing in this section shall be construed to require a school district to submit information to the department of education for purposes of the report required in this section. ”

Audit and financial oversight

Audit and financial oversight refers to statutes related to auditing, financial tracking, or compliance for federal funds.

Colorado § 2-3-103 assigned an oversight role to the State Auditor, requiring postaudits of all state financial transactions and accounts, including those involving federal funds. Colorado § 24-76-104 assigned an oversight role to the State Controller, requiring annual reports of all federal fund expenditures by state agencies to the Joint Budget Committee.

Agency oversight of federal grants

Agency oversight of federal grant applications refers to statutes that establish procedures or requirements for how state agencies request or acknowledge federal funding.

Colorado § 24-30-1306 authorized the Department of Personnel–State Administrative Support Services, with the governor’s approval, to receive and expend federal funds and to contract with the federal government to obtain such aid.

“ The department and the office, with the approval of the governor, are specifically empowered to receive and expend all grants, gifts, and bequests, where such grants, gifts, or bequests involve no state funds for acquisition, construction, or operation, including federal funds available for the purposes for which the department exists, and to contract with the United States and all other legal entities with respect thereto. The department and the office may provide, where such funds are specifically appropriated, matching funds wherever funds, grants, gifts, bequests, and contractual assistance are available on such basis. The department and the office shall provide such information, reports, and services as may be necessary to secure such financial aid. ”

Other state oversight of federal grants

Click on a state to find out its oversight of federal grants, including how it reviews, approves, and manages federal funding through statutes, executive procedures, and legislative reporting.

See also

• Federalism by the numbers
• Federalism
• Unfunded Mandates Reform Act
• Regulatory mandate
• Interlocking (cooperative) federalism

External links

• Search Google News for this topic

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