Gov. Jared Polis, surrounded by more than half of the General Assembly’s Democrats, State Treasurer Dave Young and the four Democrats from Colorado’s delegation in the U.S. House of Representatives, announced Monday how the state will spend a $3.8 billion stimulus from the American Rescue Plan signed into law by President Joe Biden in March.

The money will come to the state in one big check within the next 60 days, a result of declining unemployment numbers that allows the funds to come in one allocation rather than two payments a year apart.

Federal rules mandate the money has to be spent in four areas:

• To respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses and nonprofits, or aid to impacted industries such as tourism, travel and hospitality.

• To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers.

• For the provision of government services to the extent of the reduction in revenue due to the COVID–19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency.

• To make necessary investments in water,

sewer or broadband infrastructure.

The Colorado plan, as outlined in a eight-page brochure, identifies $2 billion in spending that could take place in the waning days of the 2021 session. That includes $1 billion directly to the state budget. Spending the last $1.8 billion will be decided this summer by General Assembly committees and put into legislation in the 2022 session, according to Senate President Leroy Garcia of Pueblo.

Of the initial $2 billion, $1.3 billion will bulk up the state budget. Sen. Dominick Moreno of Commerce City, who chairs the Joint Budget Committee, told reporters during an hour-long press conference Monday that some money will prepay obligations, which could include prepaying controlled maintenance projects or state compensation.

Moreno said he will sponsor the first bill from the package, one that will outline how those dollars will be invested, such as in mental and behavioral health and housing.

Polis pointed to a “virtual listening tour” conducted in March and April that asked Coloradans how the federal money should be spent. This is “a once in a generation opportunity to improve the quality of life” in Colorado, the governor said. “We’ve been held back too long.”

Denver’s U.S. Rep. Diana DeGette said the four Democrats in Colorado’s House delegation battled to ensure there was aid for state and local governments in the American Rescue Plan. “This is the first time all of us have been together without masks,” she said, to a handful of cheers. “Stay tuned, we’re now working on an infrastructure bill.”

Two of the most consequential votes he’s ever taken are to accept the Electoral College vote on January 6 and for the American Rescue Plan, said U.S. Rep. Ed Perlmutter of Arvada.

COVID-19 impacted every corner of the state, Garcia said, and even though the economy has rebounded faster than expected, the pandemic exacerbated existing problems. “We have committed to use this $3.8 billion for relief for those struggling the most.”

The plan outlines $150 million in the 2021 session to build housing supply, address homelessness and “remove barriers to increase housing affordability. Another $400 million would be spent on these same areas in the next year.

About $100 million will go towards mental and behavioral health programs, including substance abuse assistance, with $450 million planned next year.

College students would get help from the American Rescue Plan money, about $100 million in the 2021 session for helping them finish degrees and for workforce development. Another $100 million will follow next year, lawmakers said.

About $80 million this year and $717 million next year would be spent on business development and job creation. That includes cash for solar energy projects and monet to help fill the $1 billion hole in the unemployment insurance trust fund, according to the brochure.

Finally, transportation, infrastructure, parks and agriculture will get a $387.5 million bump this year, which lawmakers said would “jump start urgently needed investments in public lands maintenance, state park expansion” and agriculture events, including the National Western Stock Show.

“Help is here,” said Lafayette U.S. Rep. Joe Neguse of Lafayette.

The plan will place a major focus on getting people back to work, said House Majority Leader Daneya Esgar of Pueblo. “Our responsibility now is to work toward an equitable recovery.”

That includes making housing more affordable and finding ways for those out of work to have a path forward to meaningful work, including learning new skills.

Majority Leader Steve Fenberg of Boulder also addressed the housing issue. A major portion of the plan will increase affordable and attainable housing, he said, including new opportunities for home ownership. That could include downpayment assistance, building affordable housing, public-private partnerships for “land banking” and increasing the shortterm housing supply for the homeless.

When Polis and legislative leaders announced how the state would spend $700 million (later increased to $800 million) in one-time funds leftover from the 2019 tax year, he was joined by leaders from both sides of the aisle.

No Republicans attended Monday’s news conference. Sage Naumann, the spokesman for the Colorado Senate Republicans, said that Minority Leader Chris Holbert, R-Douglas County, was invited but had a prior commitment. Naumann also said that “none of us had seen the ‘plan’ being rolled out.”

Polis said he believed some of the bills would gain bipartisan support.

One guideline that has been left out: bonus payments for healthcare or grocery workers or others who risked their lives to keep businesses running during the pandemic.

Polis said that many who have worked through the economic challenges also are the main beneficiaries on behavioral and mental health assistance, housing help and workforce training. “This is tailored to meet the needs” identified in the listening tour, he said.

Perlmutter later told Colorado Politics that those bonus payments could still be made by local governments or school districts.