Colorado Higher Education Funding Bill Sparks Concern Over Private School Aid
A proposed overhaul of Colorado’s higher education funding model has ignited significant debate following a last-minute amendment that could strip financial aid from students attending private universities. While the base legislation, House Bill 26-1345, aims to modernize how the state supports colleges and universities, critics argue that new provisions will disproportionately affect the state’s most vulnerable students.
The controversy centers on a recent amendment added to the bill on May 6, which prohibits state financial aid and work-study programs for students enrolled at private institutions. If passed, these changes are slated to take effect in the 2026-2027 fiscal year.
The Amendment and Its Financial Impact
According to reporting from Denver7, the amendment is expected to reduce overall funding by $14 million. This shift in policy will impact more than 2,000 students across several prominent private institutions, including the University of Denver, Colorado Christian University, and Regis University.
University leaders have expressed deep concern that the loss of state support will be felt most acutely by students who rely on financial assistance to make higher education a reality. Catherine Rhode, the Associate VP of Admissions and Financial Aid at Regis University, emphasized the human cost of the legislative change.
“We’re really focused on the students and the need of those students to make college a possibility, to help their dreams come true,” said Rhode. “Our neediest students in the state of Colorado are going to be impacted by this loss of funding.”
Impact on Regis University
Regis University has provided specific data regarding the potential fallout of the bill. The institution estimates that 587 students will lose access to financial aid due to the amendment, representing a total loss of $5.5 million in funding. Officials at the university noted that this reduction occurs solely because of the students’ choice of institution, rather than changes in their residency or individual eligibility.
Modernizing the Funding Model
At its core, HB26-1345 is designed to revamp the state’s higher education funding formula. Since the 2021-22 school year, Colorado has utilized a performance-based funding model that directs money to public colleges and universities based on eight specific metrics. These metrics focus on measurable outcomes, such as whether students graduate on time.
As part of a standard five-year review, state lawmakers are now looking to make incremental updates to this formula. As reported by Chalkbeat Colorado, the goal is to drive more funding toward institutions that demonstrate success in specific areas, such as:
- Expanding education for part-time students.
- Supporting a higher volume of transfer students.
- Improving overall student retention and graduation rates.
Jennifer Walmer, Chair of the Colorado Commission on Higher Education, noted that the board recommended these updates in response to feedback from schools suggesting the current formula did not sufficiently reward student outcomes. However, the addition of the amendment prohibiting aid for private institution students has created a significant rift between the goal of modernizing public funding and the stability of private higher education access.
Key Takeaways
- Bill Focus: HB26-1345 seeks to update Colorado’s performance-based funding metrics to prioritize part-time and transfer students.
- The Amendment: A May 6 amendment prohibits state financial aid and work-study for students at private institutions.
- Financial Loss: The change could result in a $14 million reduction in funding, affecting over 2,000 students.
- Implementation: The proposed changes are scheduled to begin in the 2026-2027 fiscal year.
Frequently Asked Questions
Which schools will be most affected by the amendment?
The amendment specifically targets students at private institutions. Schools identified as being impacted include the University of Denver, Colorado Christian University, and Regis University.
Why is the state changing the funding formula?
The state is conducting a five-year review to modernize the model. The updates aim to reward colleges that effectively educate part-time students and facilitate successful transfers.
When would these changes take effect?
If the bill passes with the current amendment, the prohibition on state financial aid for private institution students would take effect in the 2026-2027 fiscal year.