State & Federal Update – January 13, 2025

It’s Monday, January 13, 2025. There are 114 days left in the 2025 Colorado General Assembly.

These updates are curated from multiple news sources and designed to be a “choose-your-own-adventure.” Please read any coverage of interest and skip anything you deem to be irrelevant. Hyperlinks are provided to add additional context. With the 24/7 news-cycle I hope to keep us all in the loop on items we may want to know about or better understand. Please feel free to share if you think someone outside FGMC needs to be aware of this information.

Disclaimer – The news and articles contained within this update do not represent any political positions or policy opinions of Foster Graham Milstein & Calisher, LLP. This update is designed for informational purposes only.

With the new Congress up and running, we saw a preview of how the closely divided U.S. House of Representatives might function in 2025.  Just a few weeks ago, Republican Rep. Mike Johnson barely secured the speakership, needing support from nearly every member of the House Republican Conference for a razor-thin victory.

House Republicans are facing a challenging reality: they begin the 119th Congress with one of the narrowest majorities since the House expanded to 435 seats after the 1910 census. Johnson, President-elect Donald Trump, and other GOP leaders will need to carefully manage the party’s unity to maintain a working majority for advancing their legislative priorities. This task could become even more difficult in the coming months as Trump is expected to appoint at least two more House Republicans to his Cabinet.

Currently, Republicans hold 219 seats, where Democrats hold 215 seats, and one seat is vacant following former Florida Rep. Matt Gaetz’s resignation. Johnson secured the speakership on the first ballot with exactly 218 votes, leaving literally no room for error. At one point, it appeared Johnson was two votes shy of that threshold, prompting a two-hour delay while he worked to win over holdouts. As a result, Johnson became the first speaker in 112 years to win with only the bare minimum majority.

I can’t emphasize this enough: Even with Trump’s presence uniting many House Republicans, the risk of internal party conflict is particularly high due to the party’s razor-thin majority. Republicans hold just 219 seats, the slimmest House majority in nearly a century, leaving them with only one more seat than the 218 needed to pass legislation if all 434 members are present and voting. Sheesh.

Interesting stuff. And now…

Today’s Big Three Things-To-Know:

1. Should Denver allow more needle exchange programs? Denver may be set to remove its cap on the number of needle exchange programs allowed in the city and lift restrictions on where they can be located, with a final vote scheduled for Monday. Currently, the city permits only three programs, but under the new ordinance, an unlimited number of sites could be established in areas zoned for medical offices. Additionally, the change would eliminate the current buffer zones, allowing needle exchange programs to open within 1,000 feet of schools and daycares. Needle exchanges, or syringe access programs, provide clean needles, education, and access to mental health and addiction services for drug users. The Centers for Disease Control and Prevention recommends these programs as an effective measure to prevent the spread of diseases like HIV and hepatitis, while also reducing the broader impacts of drug use. Last week, eight of the 12 council members present voted in favor of the changes, with four opposed. Council President Amanda Sandoval was absent. Supporters argue that expanding the programs could help address Denver’s rising overdose crisis, citing evidence that drug users who engage with needle exchange programs are more likely to seek treatment. Overdose deaths in Denver have surged in recent years, more than doubling from 199 in 2019 to 553 in 2023. “We are looking for ways to save lives in this crisis. This is it,” said at-large Councilwoman Sarah Parady during a December committee hearing on the ordinance. The proposal has sparked a divide between the council’s more progressive members and its moderates, with some members leaning between the two factions. Opponents on the council say they would support expanding the program only if some restrictions remain in place to limit negative impacts on neighbors of the facilities. The narrow margin of the initial vote has raised questions about whether the mayor, who has expressed concerns but stopped short of threatening a veto, will attempt to block the changes.
2. Get ready for more environmental regulations. Colorado air pollution regulators are shifting their focus from greenhouse gases to five toxic chemicals that pose health risks. Over the next two years, the state will work to regulate these chemicals after they are officially listed as priority toxic air contaminants. This follows years of advocacy by environmental and public health groups, who want stronger protections against pollutants that cause cancers, respiratory issues, and reproductive harm. The new regulations are part of a broader effort to better assess and control harmful pollutants, following a 2022 law requiring the state to identify toxic air pollutants, assess their health impacts, and mandate controls on industries that emit them. These rules will be phased in from 2025 to 2026, starting with industries like oil and gas, manufacturing, and wastewater treatment. While environmentalists advocate for additional pollutants like formaldehyde to be added, and industry groups like wastewater utilities oppose regulation of hydrogen sulfide, the state plans to finalize health-based standards for each compound. These standards will inform future regulations and pollution permits. As for the oil and gas industry, the decision over which five toxics to list is not as concerning as what comes next, said Kait Schwartz, director of the American Petroleum Institute Colorado, which represents upstream and midstream oil and gas operators.  The five toxic air contaminants being proposed for regulation are:
   1. Acrolein, which is created when fossil fuels are burned by wood-burning, industrial boilers and reciprocating engines, and it is also used to make a polymer for paints, coatings and adhesives. Acute, short-term inhalation can cause eye and respiratory tract irritation. It is not considered a cancer risk.
   2. Benzene, a carcinogen released when fossil fuels are burned, including in car exhaust and oil and gas extraction and production. It also is created by cement manufacturing, waste disposal and wood burning. Acute exposure may cause drowsiness, dizziness and headaches, as well as eye, skin and respiratory tract irritation, and unconsciousness at high levels. Chronic inhalation has caused cancer, various blood disorders and affects women’s reproductive organs, the Environmental Protection Agency has reported.
   3. Ethylene oxide, which is used to make other products such as antifreeze, textiles, adhesives, plastics and detergents. It’s used to sterilize medical equipment, including at Terumo BTC in Lakewood to sanitize medical equipment. It causes cancers in humans, including lymphoma, myeloma, leukemia and breast cancer.
   4. Hydrogen sulfide, highly toxic gas that smells like rotten eggs. It is released by wastewater treatment facilities, meat processing facilities, petroleum refining, manufacturing of asphalt and roofing material and places where large quantities of manure are stored. It can cause people to pass out due to high exposure. Low exposure can cause headaches, memory loss, balance problems and fatigue. It is not considered a carcinogen but data is limited on how it affects children’s health or women’s reproductive health, according to the EPA.
   5. Hexavalent chromium is a by-product of industrial processes such as metal fabricating and by burning coal for electricity. It can leak into water systems and into the air. It can cause cancer and impact the respiratory system, kidneys, liver, skin and eyes, the EPA’s website says.
3. An infrastructure boost for Colorado. Colorado is set to receive over $100 million in federal funding for transportation and water infrastructure projects, thanks to grants from the Bipartisan Infrastructure Law and the Inflation Reduction Act. Announced by U.S. Senators Michael Bennet and John Hickenlooper, these funds will support 11 projects across the state. The projects include:
   1. Otero County: $40.5 million for installing 12 passing lanes on U.S. 50 to improve safety along the High Plains Freight Corridor.
   2. Greeley: $29 million to convert two U.S. 34 intersections into interchanges and enhance trail connectivity.
   3. Mesa County: $21 million for pedestrian and safety improvements along Orchard Avenue.
   4. Pueblo: $12 million for installing electric vehicle charging stations in low- and moderate-income neighborhoods.
   5. Pitkin County: $2 million for transportation improvements at Aspen/Pitkin County Airport.
   6. Commerce City: $1.6 million for a study on improving connectivity along East 60th Avenue.
   7. Grand County: $1.43 million for stream restoration in the Fraser River and Willow Creek.
   8. Park County: $1.2 million for safety and infrastructure improvements in Bailey.
   9. Denver: $1.2 million for evaluating railroad crossings.
   10. Larimer County: $1.2 million for multimodal safety planning on County Road 50E.
   11. Roaring Fork Transportation Authority: $1 million for a Bus Rapid Transit extension on Highway 82.

***Bonus Story – Does Colorado have enough juice? Colorado is pushing toward a clean energy future, with goals to transition to 100% renewable electricity by 2040 and reduce greenhouse gas emissions by 100% from 2005 levels by 2050. As part of this, coal plants are closing, and the state aims to increase the use of electric vehicles and all-electric buildings. However, there are concerns about whether the state’s power grid can keep up with rising demand while meeting emissions goals. The growing demand for electricity is driven by factors like electrification of buildings, transportation, and new data centers, all of which require significant power. Xcel Energy, Colorado’s largest utility, predicts the state will need up to 14,000 megawatts of new power in the coming years. This increase, alongside the closure of coal plants, raises concerns about the availability of reliable power, especially since renewable energy sources like wind and solar are intermittent and require backup power. Transmission infrastructure is another challenge. A recent study suggests the U.S. will need to double its transmission system by 2050 to handle the rising demand, particularly for renewable energy, which is often generated far from population centers. In Colorado, Xcel Energy’s $1.7 billion Power Pathway project aims to improve transmission and bring renewable power from rural areas to urban centers. Utilities like Tri-State are adding renewable sources but also ensuring there are backup resources like natural gas. Despite these efforts, some renewable energy projects have faced delays due to rising costs and supply chain disruptions, which may prevent the state from meeting its ambitious goals.

***Bonus, Bonus Story – What to know about the confirmation hearings for Trump’s Cabinet picks this week. This week, some of President-elect Trump’s high-profile Cabinet picks face crucial Senate confirmation hearings, with potential clashes expected given the political divide and controversy surrounding several nominees. These hearings will allow the nominees to address lingering concerns about their past actions and qualifications. These hearings will be key moments in shaping Trump’s administration and testing the political landscape.

Notable hearings to watch are:

• Pete Hegseth: Nominee for Defense Secretary, a former Fox News host and Army veteran, faces scrutiny over allegations of sexual misconduct and financial mismanagement. His hearing is Tuesday at 9:30 a.m. before the Senate Armed Services Committee.
• Kristi Noem: South Dakota’s governor, nominated for Secretary of Homeland Security, is tasked with implementing Trump’s immigration agenda. Her hearing is Wednesday at 9 a.m. before the Senate Homeland Security Committee.
• Marco Rubio: Nominated for Secretary of State, Rubio has bipartisan support and will focus on implementing Trump’s foreign policy, including ending wars in Ukraine and the Middle East. His hearing is Wednesday at 10 a.m. before the Senate Foreign Relations Committee.
• Pam Bondi: Former Florida Attorney General, nominated for Attorney General, could face scrutiny due to her Trump loyalty, especially if Trump targets political enemies. Her hearing will be split across two days, Wednesday at 9:30 a.m. and Thursday at 10:15 a.m. before the Senate Judiciary Committee.

Other upcoming hearings and points of tension include:

• Robert F. Kennedy Jr. for Secretary of Health and Human Services, due to his history of spreading vaccine misinformation.
• Kash Patel for FBI Director, known for supporting Trump’s 2020 election lies.
• Linda McMahon for Secretary of Education, accused of complicity in child exploitation (denied).
• Tulsi Gabbard for Director of National Intelligence, following her controversial meeting with Syrian President Bashar al-Assad in 2017.

That’s a lot to keep your eyes on, so stay tuned for updates later this week. And now, more news…

First and foremost…Get ready. It’s going to get cold.

As noted by Axios, an Arctic blast and snow will hit Denver at the end of the week, producing this winter’s coldest temperatures so far.

The thermometer begins to dip Friday with 2-6 inches of snow expected through Saturday along the Front Range, according to meteorologists. The cold extends into Sunday and Monday when high temperatures stay in the single digits and lows could fall to -10 or lower, 9News reports. Be prepared to bundle up.

You can read more from Axios here.

From Denver…Suspect arrested in 4 weekend stabbings around Denver’s 16th Street Mall following a 2nd death.

According to The Denver Post, Denver police arrested a suspect Sunday night in connection with a string of weekend stabbings on or near the 16th Street Mall that killed two people, including an American Airlines flight attendant.

One fatal and two nonfatal stabbings happened between 5 and 6 p.m. Saturday along the 16th Street Mall, according to the Denver Police Department. A fourth person was fatally stabbed around 10 p.m. Sunday in the 1600 block of Market Street, where the street intersects with the pedestrian mall, police said.

Police took the suspect into custody following that attack. He has not yet been publicly identified, but investigators said on social media that they believe he is connected to all four of the weekend stabbings. Denver officers responded to the first stabbing in the 700 block of 16th Street, near California Street, around 5:20 p.m. Saturday, according to a news release from the police department. Paramedics took one woman to the hospital, where she later died from her injuries, police said.

You can read more from The Denver Post here.

More from Denver…Denver traffic jams are getting worse.

As reported by Axios, we hardly need to tell you this: Traffic congestion is worsening in the Denver metro.

Why it matters? Time is money. Denver commuters spent about 43 to 44 hours stuck in traffic jams in 2024, according to reports from transportation firms TomTom and INRIX. INRIX finds that’s an increase of 19% compared to 2023 — the largest jump among major U.S. metro areas nationwide. That means Denver’s traffic is moving much closer to its pre-pandemic norms.

TomTom measured the average time it takes to drive six miles and found Denver increased a fraction to 13 minutes and 56 seconds. That ranks Denver 24th among major U.S. cities.

You can read more from Axios here.

From the Mayor’s Office…Should Denver allow more needle exchange programs? Some council members — and the mayor — aren’t sure.

According to The Denver Post, Denver would eliminate its limit on the number of needle exchange programs that can operate in the city and remove restrictions on their location under a new ordinance set for a final vote Monday.

The city allows only three programs currently, but if the City Council adopts the new rules, an unlimited number of sites could open in areas zoned for medical offices. The change would also remove existing buffers, allowing needle exchange sites to open within 1,000 feet of schools and day cares.

Needle exchanges, also known as syringe access programs, provide services to drug users including clean needles, education, and access to mental health and addiction treatments. The Centers for Disease Control and Prevention recommends them as a way to prevent the spread of diseases like HIV and hepatitis, while reducing the impacts of drug use on a community. Last week, eight of the 12 council members present gave initial approval to the proposed changes, and four voted against the measure. Council President Amanda Sandoval was absent.

Supporters say the expansion could help blunt rising overdoses in Denver, pointing to data that show drug users who visit needle exchange programs are much more likely to seek treatment than those who don’t. Denver has seen a sharp increase in accidental overdose deaths in recent years — more than doubling from 199 in 2019 to 553 in 2023. “We are looking for ways to save lives in this crisis. This is it,” at-large Councilwoman Sarah Parady said during a December committee hearing about the ordinance.

You can read more from The Denver Post here.

From my Alma Mater…Bill McCartney, who coached Colorado to its only football national championship in 1990, has died.

Via CPR, Bill McCartney, who coached Colorado to its only football national championship in 1990, has died. He was 84.

The charismatic figure known as Coach Mac died Friday night “after a courageous journey with dementia,” according to a family statement. His family announced in 2016 that he had been diagnosed with dementia and Alzheimer’s. “Coach Mac touched countless lives with his unwavering faith, boundless compassion, and enduring legacy as a leader, mentor and advocate for family, community and faith,” the family said in its statement. “As a trailblazer and visionary, his impact was felt both on and off the field, and his spirit will forever remain in the hearts of those he inspired.”

McCartney remains the winningest coach in Colorado history, with a record of 93-55-5. He was inducted into the College Football Hall of Fame in 2013.

You can read more from CPR here.

Around the region…Colorado Springs Planning Commission unanimously backs ballot language rules for retail marijuana.

According to Colorado Politics, the Colorado Springs Planning Commission unanimously voted last Wednesday afternoon to back less-restrictive zoning rules for recreational marijuana in the city.

The Planning Commission had the first hearing for the ordinance enacting the ballot measure voters passed in November to begin permitting recreational marijuana sales in Colorado Springs. Ballot Question 300 allows the existing medical marijuana stores in the city to apply for retail sales licenses.

City Council will begin discussions of the new marijuana rules next week. The council’s work-session agenda on Monday includes a possible executive session for legal advice about retail marijuana licenses and the introduction of four retail marijuana ordinances. The new city rules are scheduled for a first vote on the council’s Tuesday agenda.

You can read more from Colorado Politics here.

More from the metro…Judge grants emergency order to close Edge of Lowry apartments in Aurora.

As reported by The Denver Post, An Aurora municipal judge granted an emergency order to close the troubled Edge of Lowry apartments, finding the property presents “an imminent threat to public safety and welfare,” city officials said Monday.

Aurora filed an emergency closure order seeking to shutter the 60-unit apartment complex last week, describing the property as “an epicenter for unmitigated violent crimes and property crimes perpetuated” and citing the recent kidnapping and torture of two residents by suspected members of the Venezuelan gang Tren de Aragua.

Attorneys for the city and property owners are set to appear in court Monday afternoon for the criminal nuisance case, Aurora officials said in a news release.

You can read more from The Denver Post here.

Around the state…Tight budgets, dwindling volunteers, bureaucracy burdens frustrate Colorado’s rural fire departments.

Via Colorado Politics, in metro areas like Denver, paramedics and EMTs are trained to stabilize patients for an average of 10 to 15 minutes, thanks to the proximity of hospitals and trauma centers. But rural paramedics, like Kristina Nowak with the Agate Fire Protection District, often have to stretch that miracle, sustaining patient lives for up to an hour before she and her volunteer ambulance crew can reach the nearest medical facility.

Across the eastern plains of Colorado — as well as rural expanses across the nation — rural fire departments and the vital emergency medical services they provide are on life support.

Dwindling volunteers, ballooning bureaucracy and patchwork funding all put lives and property at risk in some of the state’s most vulnerable communities. Rural fire chiefs have repeatedly expressed their pleas to state and federal officials for more help. But those calls to action seem to have fallen on deaf ears, they said. And budgets are drying up.

You can read more from Colorado Politics here.

More from around the state…BLM decision delivers fresh blow to contentious expansion plan for limestone quarry above Glenwood Springs.

According to The Colorado Sun, the owner of a limestone quarry above Glenwood Springs has spent several years arguing that its contentious plan for an exponential expansion of the mine should be expedited under the 1872 Mining Act, which reduces regulatory hurdles to encourage mining of uncommon minerals with distinct values.

It turns out, the company that owns the Mid-Continent Limestone Quarry a mile above Glenwood Springs has not been able to prove it is selling valuable limestone. And the Department of the Interior last week said it must apply for a new permit — with more strict environmental scrutiny — to continue operating the 16-acre quarry on a ridge above town.

It’s the latest hurdle — and possibly a fatal blow — for a money-losing mining company with big plans.

You can read more from The Colorado Sun here.

In regulatory news…Colorado to start regulating emission of 5 air toxics that make people sick.

Via The Denver Post, Colorado air pollution regulators spend a lot of time thinking about greenhouse gases that create a smog across the Front Range and contribute to global warming, But this week, they’ll focus on five toxic chemicals that make people sick.

Five new compounds soon will be listed as priority toxic air contaminants in Colorado and, over the next two years, the state’s Department of Public Health and Environment and Air Quality Control Commission will determine out how to regulate them. The state’s Air Pollution Control Division will recommend five compounds to be regulated to the commission during its two meetings that begin Thursday.

The creation of the list of toxic air contaminants is the result of a years-long effort from environmentalists and public health advocates who want the state to do more to protect people from the pollution that can cause cancers, such as leukemia and lymphoma, and lung diseases, such as asthma, and can harm women’s reproductive health.

You can read more from The Denver Post here.

On energy…Can Colorado’s electric grid keep up as coal plants close and data centers open?

According to The Denver Post, while campaigning for his first term in office, Gov. Jared Polis said he wanted to see 100% of the power on Colorado’s electric grid come from renewable energy sources by 2040. Lawmakers have approved bills furthering that vision by setting targets to cut greenhouse gas emissions, the goal being 100% reduction from 2005 levels by 2050.

Coal plants across Colorado have been shut down with all of them expected to close by the end of 2030. Rules by the city of Denver and the state are aimed at eventually making buildings all electric. Colorado has a goal of getting nearly 1 million electric vehicles on the roads by 2030 and recently moved ahead of California for the nation’s top spot in market share of electric vehicles sold in the state.

But does Colorado have the juice to keep up the pace on the road to a clean-energy future? Can the state shutter several power plants and still meet the everyday demands of keeping the lights, heat and air conditioning on — all while hitting targets for reducing emissions and expanding the use of renewables? How much will it cost? The surging number of power-intensive mega computing centers and risks posed by more frequent and severe bouts of extreme weather are raising questions about how much the electric grid can take. And not just in Colorado.

You can read more from The Denver Post here.

From under the Gold Dome…In State of State Address, Polis seeks regulatory reform and caution in potential Labor Peace Act changes.

As reported by The Sum & Substance, Gov. Jared Polis used his State of the State Address on Thursday to call out several major business priorities, including asking legislators to undertake regulatory reform and saying he only wants to alter the Labor Peace Act if employers and workers agree on changes.

The Democratic governor also pushed legislators to advance construction-defects reform, appeared to side with hospitals in their fight with pharmaceutical manufacturers over the federal 340B drug-pricing program and called for more laws to boost housing construction. And after reaching a deal with environmental groups and oil-and-gas companies in 2024 around new fees and regulations, he notably did not call for any new pollution-reduction measures this year, focusing instead on housing and transit to meet climate goals.

Polis’ seventh and penultimate State of the State — he is term-limited from seeking re-election in 2026 — may have been the annual speech of his that was most well-received by business interests. His push for regulatory reform and caution against changes to the Labor Peace Act, both made in the name of operational stability, seemed an attempt to offer guidance to legislators from his party who have sought more restrictions on businesses than Polis has liked.

You can read more from TS&S here.

More from the Golde Dome…Medical facility fees under examination at the Colorado State Capitol.

According to Denver Business Journal, Colorado hospital leaders say they are preparing for the likely return of facility fee proposals during the 2025 legislative session.

Facility fees are bills for outpatient services that go toward a health system’s operational expenses. A person getting a common outpatient procedure such as an X-ray likely has a facility fee in their medical bill. The topic arose in 2023 with the introduction of House Bill 23-1215, a controversial proposal that sought to prohibit facility fees altogether. The local advocacy organizations that supported the bill said cutting facility fees would make health care more affordable.

Colorado hospital leaders pushed back, saying the law would cripple operating margins and cause a shutdown in services. The legislation was later pared down to the prohibition of facility fees for preventative services and a requirement that hospital systems notify patients of facility fee charges in advance of their appointments. The bill also mandated a third-party report on when, where and how facility fees are charged.

That report, released in October, emerged with more questions than answers. Among its key findings was the fact that analyzing facility fees is highly challenging due to complicated billing practices and private payer rates. Still, the report found that independent providers collected significantly less revenue for billing codes associated with facility fees compared to hospital systems.

You can read more from DBJ here.

More from the State Capitol…Opening-day bills tackle unionization, wage theft, price gouging, Ozempic and more.

As reported by The Sum & Substance, Colorado legislative Democrats stormed out of the gate Wednesday by introducing two major pro-labor efforts as well as several cost-of-living bills that are likely to generate significant debate because of the methods they use to bring down costs.

Meanwhile, legislators from both parties revived previously killed bills on the first day of the 2025 session, including a proposed limit on grocery-store liquor sales, a proposed study of a single-payer health-care system and a now-bipartisan effort to boost nuclear energy. Plus, a pair of Democrats introduced a bill calling for state regulators to consider the impact on workforce of potential new air-quality regulations.

In all, legislators introduced 126 bills on the first day of the session, quite of few of which would have direct impact on business. And that’s before they have put forth any proposals on construction-defects reform, federal drug-pricing program limitations, regulatory reform or artificial-intelligence regulation, all of which will take up significant time at the Capitol.

You can read more from TS&S here.

A bill to watch…Republican legislators seek to repeal Colorado’s ‘cage-free egg’ law.

According to Colorado Politics, a pair of Republican lawmakers have introduced legislation to repeal Colorado’s “cage-free egg” law, which went into full effect at the start of the year.

Under 2020’s House Bill 1343, all eggs sold in Colorado are required to come from cage-free chickens starting on Jan. 1, 2025. This year’s House Bill 1074, sponsored by Rep. Ryan Gonzalez, R-Greeley, and Sen. Barbara Kirkmeyer, R-Brighton, would repeal that law. The bill, which was introduced on Jan. 8, has been assigned to the Agriculture, Water & Natural Resources Committee. According to the bill, the cost of producing cage-free eggs is roughly 16% to 18% higher than the cost of producing eggs in a caged environment. The bill also states that egg prices have increased by nearly 40% between September 2023 and September 2024, the largest increase of any food.

You can read more from Colorado Politics here.

From Washington with love…Colorado transportation, water infrastructure projects receive federal funding.

Via Colorado Newsline, Colorado will receive over $100 million from the federal government to support transportation and water infrastructure projects around the state.

U.S. Sens. Michael Bennet and John Hickenlooper, both Colorado Democrats, announced Friday that funding from various U.S. Department of Transportation grant programs will support 11 infrastructure projects around the state. Nearly $112 million will come to the state from grants supported by the Bipartisan Infrastructure Law and the Inflation Reduction Act.

“Through investments like these, the Bipartisan Infrastructure Law and Inflation Reduction Act continue to support Colorado as we work to meet our state’s changing needs — from improving our roadways to strengthening local economies,” Bennet said in a statement. “I’m grateful that the Department of Transportation heard our calls to support many of these projects.”

You can read more from Colorado Newsline here.

In Washington DC…Trump frustrated with GOP lawmakers over debt limit quandary.

According to The Hill, President-elect Trump wants congressional Republicans to figure out a way to avoid a default on the national debt after venting his frustration with the Senate GOP over its failure to raise the debt limit as part of a government funding package last month. Trump told Senate Majority Leader John Thune (R-S.D.) at a recent meeting that it’s now up to him to find a way around the debt limit impasse, according to a Republican source familiar with the conversation. “The debt limit came up. He’s very unhappy that that’s hanging out there, and he made it Thune’s problem. He said, ‘John, I don’t know how you’re going to solve this problem, but you’re going to figure out some way,’” a GOP senator who attended the meeting said.

Republicans say Trump’s unhappy that Congress failed to raise the debt limit before he takes office Jan. 20 and wants congressional leaders to take care of the looming problem, largely washing his own hands of the matter — at least for now. “Yes, we have to figure out because we’re in the majority,” Sen. John Cornyn (R-Texas) said of Congress’s inability to take care of the debt limit before Trump’s inauguration.

You can read more from The Hill here.

More from Washington DC…Key details about this week’s confirmation hearings for Trump’s Cabinet nominees.

Via Axios, some of President-elect Trump’s highest profile Cabinet picks will be under fresh scrutiny this week as they brace for tough Senate confirmation hearings that could make or break their nominations.

With Democrats looking to create fireworks and the Republican party deeply divided, the hearings are sure to escalate clashes over Trump’s most controversial nominees. Many of Trump’s picks have already met with senators individually, but the high-stakes confirmation hearings will offer them the chance to shine. For some, they could also be forced to address lingering questions about their past actions and relevant experience.

You can read more from Axios here.

From Congress…Republicans start 2025 with the smallest House majority since 1931.

As reported by 538, last Friday, we got a first look at how the closely-divided U.S. House of Representatives may have to operate in 2025. Republican Rep. Mike Johnson held onto the speakership by the skin of his teeth: He needed support from all but one sitting member of the House Republican Conference to win the absolute slimmest of victories.

The GOP is going to have to get used to this reality: House Republicans begin the 119th Congress with just about the narrowest majority that any party has had since the House expanded to 435 seats after the 1910 census. Wrangling the Republican conference and maintaining party unity will be critical for Johnson, President-elect Donald Trump and other party leaders to have the necessary working majority to achieve their legislative plans. Plus, that could get even harder in the next few months, as Trump is expected to tap at least two more House Republicans as he continues filling out his Cabinet.

At the moment, Republicans have 219 sitting members, just one more seat than the minimum 218 necessary to pass legislation in the 434-member House, where Democrats hold 215 seats and there’s one vacancy (due to the resignation of former Florida Rep. Matt Gaetz). Tellingly, Johnson won the speakership on the first ballot with exactly 218 votes, leaving him no room to spare. In fact, it initially looked like Johnson was two votes short of that threshold, and the House held the vote open for about two hours so that Johnson could parley with a couple of holdouts who eventually switched their votes to him. As a result, Johnson became the first speaker candidate in the past 112 years to win without a single vote beyond the bare minimum needed for a majority.

You can read more from 538 here.

From the courts…Judge clears the way for release of special counsel Smith’s report on Trump’s 2020 election case.

According to The Associated Press, the Justice Department can publicly release special counsel Jack Smith’s investigative report on President-elect Donald Trump’s 2020 election interference case, a federal judge said Monday — the latest ruling in a court dispute over the highly anticipated document days before Trump is set to take office again.

But a temporary injunction barring the immediate release of the report remains in effect until Tuesday, and it’s unlikely U.S. District Judge Aileen Cannon’s order will be the last word on the matter. Defense lawyers may seek to challenge it all the way up to the Supreme Court. Cannon, who was nominated to the bench by Trump, had earlier temporarily blocked the department from releasing the entire report on Smith’s investigations into Trump that led to two separate criminal cases. Cannon’s latest order on Monday cleared the way for the release of the volume detailing Smith’s case that accused Trump, a Republican, of conspiring to overturn his 2020 election loss to Joe Biden, a Democrat.

You can read more from AP here.

From the Feds…IRS chief predicts agency ‘performance will backslide’ if funds and staffing are cut.

As reported by Government Executive, the Internal Revenue Service’s “indicator lights are green” as it opens the 2024 tax filing season, the agency chief said on Friday, even as he cautioned that lawmakers and the incoming Trump administration could force drastic rollbacks of agency services in the longer term.

IRS is planning to boost its taxpayer assistance center hours, increase rural outreach and add offerings for tax counseling, Commissioner Danny Werfel said, and will double the number of states where taxpayers can take advantage of a new, free program that allows them to file directly through the agency. The agency has improved its capabilities and performance after receiving an unprecedented infusion of cash from the Inflation Reduction Act, but those funds now hang in the balance as Republicans take power on the promise to rescind them.

Of the $80 billion originally allocated in the IRA, more than $20 billion has been revoked and another $20 billion is frozen pending the outcome of fiscal 2025 appropriations. Werfel acknowledged that his vision to modernize the agency, sustain an improved customer service level and continue a hiring spree that has both reduced backlogs and increased enforcement now faces an uncertain future. “We’ve had to curtail our overall modernization blueprint because the funding has been rescinded over the past three years in certain amounts,” Werfel said. “But where we stand today, if we can retain that $20 billion, it is a modernization plan that we can all be proud of.”

You can read more from Government Executive here.

Around the country…DeSantis orders special session on immigration, with Trump inauguration looming.

According to Politico, Florida Gov. Ron DeSantis said Monday he would call a special session for late January, saying that he wants legislators to help the state prepare for the illegal immigration crackdown that is expected once President-elect Donald Trump takes office.

“We don’t have time to waste,” DeSantis said. “The American people spoke very clearly.” DeSantis also wants legislators to consider changes to how citizen initiatives get on the ballot, a revamp of condominium laws passed after the Surfside disaster, as well as setting aside more money to help hurricane-battered communities. The governor made the move, even though there has been little publicly announced buy-in from new legislative leaders about jumping into action now. The Florida Legislature already has its regular session scheduled to start in March. DeSantis said he is looking to call the special session for the week of Jan. 27.

You can read more from Politico here.

More from around the country…Minimum wages are increasing in nearly half the states this year.

Via Colorado Newsline, the minimum wage will increase in nearly half the states this year even as the federal wage floor remains stuck at $7.25 per hour.

In many states, such as Colorado, the minimum wage is automatically adjusted upward as inflation rises. But voters in several states, including deeply red ones such as Alaska and Missouri, chose in November to significantly increase their minimum wages this year.

Michigan will see its minimum wage jump from $10.33 to $12.48 on Feb. 21 after the state Supreme Court concluded the legislature subverted residents when it adopted but then significantly amended voter-initiated ballot measures in 2018 to raise the minimum wage and mandate paid sick time. Michigan’s wage floor is set to rise to $14.97 by 2028 — more than double the federal minimum wage, which has not increased since 2009. That’s the longest period without a federal increase since Congress first set a minimum wage in 1938.

You can read more from Colorado Newsline here.

The latest from the California wildfires…‘Red Flag’ warning issued as more dangerous winds are forecast for L.A.

As reported by The New York Times, dangerous winds were again expected to sweep through Los Angeles late Monday, threatening the progress that firefighters have made in recent days against the devastating wildfires that have raged across the city.

Forecasters have issued a rare fire danger alert for Monday night through Wednesday morning. That is the same level of alert that was issued a week ago, as strong wind gusts fueled some of the deadliest and most destructive fires in California history. In anticipation of the new threat, fire crews and resources were being deployed to at-risk areas, including around the Palisades fire, officials said. While winds in the coming days may not be as strong as those last week, the length of their duration could worsen the fire risk. “We are not in the clear as of yet,” Kristin M. Crowley, the Los Angeles fire chief, said on Monday. “And we must not let our guard down.”

Here’s what else NYT is covering:

• Containment updates: Firefighters slowed the progress of the Eaton fire, near Altadena and Pasadena, over the weekend. The 14,000-acre blaze did not grow on Sunday and was 33 percent contained by Monday morning, according to Cal Fire, while the 23,700-acre Palisades fire on the west side of Los Angeles was 14 percent contained.
• Death toll: The Eaton fire has killed 16 people, making it one of the deadliest in California’s history, and at least eight people have died in the Palisades blaze. Another 16 people have been reported missing in the areas of the two fires, and officials have warned that the number of fatalities is likely to rise.
• Relief ahead: Los Angeles should get a break from fire weather later this week, said Rich Thompson of the National Weather Service. Wind speeds are forecast to drop on Thursday and remain low over the weekend.
• Scale of destruction: The total area burned by the past week’s fires — nearly 40,000 acres — is larger than the city limits of San Francisco. And while the number of people under evacuation orders has dropped slightly to 92,000, from more than 100,000 on Sunday, many more have been warned that they may have to evacuate. The largest fires have damaged more than 12,000 structures, which can include houses, cars or outbuildings.
• Early moments: While it remained unclear what started the fires, power lines near the Eaton and Palisades fires were on when those blazes started and may have played a role. “We are looking at every angle,” Dominic Choi, the assistant chief of the Los Angeles Police Department, said on Monday, adding that arson had not been ruled out as a cause.
• Schools reopen: Most schools in the Los Angeles Unified School District reopened on Monday, after all campuses across the city were closed last week. Superintendent Alberto Carvalho said he decided it was time to reopen schools as winds eased slightly and the fires slowly began to be contained.

You can read more from NYT here and CNN here.

More on the fires…How will calamity change Los Angeles?

From The Economist, the Eaton Fire is one of several that have swept across Los Angeles County. At least 24 people have died and more than 12,000 buildings have been destroyed. Parts of Altadena, a mixed-income neighborhood set ablaze by windblown embers, look as though a bomb went off. Only small remnants—a toy truck, a swing set, one very resilient lemon tree—are left amid the ashes.

With high winds and no rain in sight, the fires are far from contained. Already, experts are predicting that they will prove the costliest in America’s history: not because of their size, but because of where they broke out. With nearly 10m residents, LA County is more populous than 40 of America’s 50 states. Many Angelenos live in picturesque neighborhoods, set against the mountains, that are extremely vulnerable to wildfires. A typical home in Pacific Palisades, a ritzy area razed by the flames, cost more than $3m before the fire.

You can read more from The Economist here.

On a global scale…Why global bond markets are convulsing

According to The Economist, almost everywhere, government-bond yields are rising fast. Those on ten-year American Treasury bonds are almost 5%. German bunds now offer 2.6%, up from close to 2% in December. Japanese bond yields are climbing. Things are particularly extreme in Britain, where gilt yields recently reached almost 5%, their highest since 2008. Rising yields are bad news for governments, which must pay more to service debts. They are also painful for all sorts of other borrowers, including many mortgage-holders, whose bills ultimately depend on governments’ borrowing costs.

What is going on? Central bankers across the rich world have cut rates—yet the real economy is seeing little or no relief. The borrowing costs facing businesses and households have barely budged. In the euro area the interest rate on new business loans has fallen by less than a percentage point. A British consumer looking to borrow £10,000 ($12,200) pays an average rate of 6.75%, just short of a recent peak.

And in America the rate on a 30-year fixed-rate mortgage is close to 7%, having risen by a percentage point over the past few months. The situation marks a profound change from before and during the covid-19 pandemic, when bond yields were heading to all-time lows.

You can read more from The Economist here.

Speaking of…Why bond yields are surging around the world.

As reported by The Wall Street Journal, Government-bond yields have surged across the developed world in recent weeks, jarring stocks and pressuring indebted countries.

The worldwide bond rout threatens to complicate the efforts of central banks that have been cutting short-term interest rates. Rate cuts aim to lower borrowing costs for consumers and businesses. But the rise in yields is instead making it costlier to borrow, “tightening financial conditions” in Wall Street parlance. The average 30-year U.S. mortgage rate rose to 6.9% last week.

Most analysts believe the U.S. has been driving the recent bond-market selloff.  Yields on U.S. Treasurys, which rise when bond prices fall, got their first big boost in October with the release of strong monthly jobs data that wiped away fears of a looming recession. Then Donald Trump won the U.S. presidential election promising policies that many investors believe are inflationary, and Federal Reserve officials shifted their forecasts to fewer rate cuts in 2025.

You can read more from WSJ here.

And around the globe…Israel awaits Hamas’ response to final Gaza deal draft, officials say.

According to Axios, Israel and mediators from Egypt, the U.S. and Qatar have given Hamas a final draft agreement for the release of hostages held by Hamas in exchange for a ceasefire in Gaza, two senior Israeli officials and a source familiar with the details said.

The indirect negotiations between Israel and Hamas have reached a critical point a week before President-elect Trump is sworn into office. President-elect Trump has threatened there would be “hell to pay in the Middle East” if Hamas didn’t release the hostages by the time he is inaugurated. About 98 hostages are still being held in Gaza, among them seven Americans. Roughly half of the hostages, including three Americans, are believed to be still alive, according to Israeli intelligence.

More than 46,500 Palestinians have been killed by Israeli forces since the Oct. 7, 2023 Hamas attack on Israel, according to the Ministry of Health in Gaza. The sources said Qatari, Egyptian and U.S. mediators are awaiting Hamas’ response to the draft. An Israeli official said the person who will make the decision is the leader of Hamas’s military wing in Gaza, Mohammed Sinwar.

You can read more from Axios here.

That’s all for today! Have a wonderful start to your week!

Best,

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