The federal government has canceled hundreds of millions of dollars in grants to Colorado, targeting clean energy initiatives, education programs, and public health support as part of a broader funding rollback during the ongoing government shutdown.

According to the Colorado Energy Office, more than $500 million in Department of Energy grants have been rescinded, affecting 34 projects across the state. These include programs focused on methane reduction, battery recycling, grid resilience, and carbon capture — many funded under the Bipartisan Infrastructure Law and the Inflation Reduction Act.

The Energy Department cited “funding reprioritization” and “compliance concerns” in its decision, though state officials have called the move politically motivated. The cancellations are expected to impact local contractors, research institutions, and rural cooperatives that had already begun implementation.

In higher education, the Department of Education has terminated discretionary grants for Minority-Serving Institutions (MSIs), affecting several Colorado colleges. Colorado State University Pueblo, Adams State University, and Lamar Community College are among those losing federal support for programs serving Hispanic, low-income, and first-generation students. The administration claims the grants relied on racial quotas, which it says violate federal law.

The shutdown’s ripple effects extend beyond funding. Rocky Mountain National Park faces closure without emergency state support, and nutrition programs like WIC are operating on reserve funds. Governor Jared Polis has pledged temporary state assistance to keep essential services running, but warned that prolonged disruption could strain Colorado’s budget.

As federal agencies scale back operations, local governments and nonprofits are bracing for increased demand and fewer resources. The full economic and environmental impact of the grant cancellations remains to be seen.

Colorado Projects Affected by Federal Grant Cuts

• Clean Energy & Infrastructure (Department of Energy)
• Methane Emissions Reduction: Grants to rural natural gas operators canceled.
• Battery Recycling Pilot: University of Colorado-led initiative halted.
• Grid Resilience Upgrades: Funding withdrawn from Tri-State Generation and regional cooperatives.
• Carbon Sequestration Research: CSU and NREL projects suspended.
• Solar Workforce Training: Community college programs defunded.

Higher Education (Department of Education)

• Colorado State University Pueblo: MSI grant for Hispanic-serving programs terminated.
• Adams State University: Loss of federal support for first-generation student services.
• Lamar Community College: STEM access and tutoring programs defunded.
• Metropolitan State University of Denver: Equity-focused curriculum development halted.

Public Services & Parks

• Rocky Mountain National Park: Faces closure without emergency state funding.
• WIC Nutrition Program: Operating on reserve funds; federal support paused.
• Tribal Health Clinics: Grant processing delayed for Southern Ute and Ute Mountain Ute services.

Sources: Colorado Energy Office, Department of Education, Governor’s Office, DOE grant