A Bill for an Act
Page 1, Line 101Concerning financial literacy requirements as a condition
Page 1, Line 102of high school graduation in public schools, and, in
Page 1, Line 103connection therewith, making an appropriation.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
Current law encourages each school district board of education or charter school to adopt successful completion of a course in financial literacy as a graduation requirement. The bill requires successful completion of a course in financial literacy as a condition of high school graduation.
The bill requires submission of a free application for federal student aid or a Colorado application for state financial aid as a condition of high school graduation unless an exception applies.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. Legislative declaration. (1) The general assembly finds and declares that:
Page 2, Line 3(a) Ensuring all Colorado high school students complete a
Page 2, Line 4dedicated course in financial literacy before graduation is essential to preparing students for modern adulthood;
Page 2, Line 5(b) In collaboration with educators, administrators, policymakers,
Page 2, Line 6and community leaders, the Colorado department of education has
Page 2, Line 7developed rigorous state personal financial literacy standards and has
Page 2, Line 8made robust resources available to advance high-quality instruction in this vital subject area;
Page 2, Line 9(c) Research confirms that required standalone financial literacy
Page 2, Line 10courses taught in the eleventh or twelfth grade deliver the greatest impact
Page 2, Line 11by empowering students with comprehensive financial management skills
Page 2, Line 12at a time when they are most ready to apply the skills. Local education
Page 2, Line 13providers have broad discretion to determine the method of implementing
Page 2, Line 14a financial literacy course, the curriculum and materials used for teaching
Page 2, Line 15a financial literacy course, the licensing and certification requirements for
Page 2, Line 16teaching a financial literacy course, and existing local graduation requirements a financial literacy course may fulfill.
Page 2, Line 17(d) Research shows that education and training culminating in
Page 2, Line 18credentials such as industry certificates, trade school certificates,
Page 2, Line 19apprenticeships, associate degrees, and bachelor degrees, among other
Page 2, Line 20business and industry-based experiences, are necessary to earn a living;
Page 3, Line 1(e) Completion of the federal or state financial aid applications is
Page 3, Line 2a key component to understanding how additional education beyond high
Page 3, Line 3school can be financially supported. Additionally, completion of the
Page 3, Line 4federal or state financial aid applications, especially while students are
Page 3, Line 5still in high school, supports access to different career pathway options
Page 3, Line 6because financial aid is often the vehicle students use to pay for tuition,
Page 3, Line 7fees, equipment, and other expenses associated with additional training beyond high school.
Page 3, Line 8(f) Understanding how to access career-aligned resources and
Page 3, Line 9supports is integral to the way students and families navigate training and
Page 3, Line 10educational resources, which is why the free application for federal
Page 3, Line 11student aid is a critical component of the state's financial literacy quality
Page 3, Line 12standards. Financial literacy education and Colorado's individual career
Page 3, Line 13and academic plan can help families understand how to obtain federal or
Page 3, Line 14state financial aid to support students in pursuing additional education and career training.
Page 3, Line 15(g) In 2023, through the federal "FAFSA Simplification Act", the
Page 3, Line 16free application for federal student aid was simplified, reducing the
Page 3, Line 17number of questions from 100 to 30 and reducing the financial information needed on the application;
Page 3, Line 18(h) In 2024, the Colorado general assembly passed the Colorado
Page 3, Line 19promise tax credit, which makes students who attend public institutions
Page 3, Line 20and have a family income of $90,000 or less eligible for a complete
Page 3, Line 21reimbursement of any out-of-pocket tuition and fees paid for the student's
Page 3, Line 22education; however, students must fill out a federal or state financial aid application in order to qualify for the tax credit; and
Page 3, Line 23(i) Colorado students can magnify the impact of state investments
Page 4, Line 1in higher education by accessing federal money to pursue postsecondary
Page 4, Line 2education and by earning credentials to enhance the student's
Page 4, Line 3income-earning potential. It is estimated that Colorado students who
Page 4, Line 4complete federal and state financial aid applications can leverage more than $30 million in resources.
Page 4, Line 5(2) Therefore, the general assembly declares it is essential to ensure that prior to graduation, Colorado high school students:
Page 4, Line 6(a) Complete a course in financial literacy; and
Page 4, Line 7(b) Understand and practice using federal and state financial aid
Page 4, Line 8applications if students intend to seek postsecondary education credentials.
Page 4, Line 10SECTION 2. In Colorado Revised Statutes, add 22-1-104.9 as follows:
Page 4, Line 1122-1-104.9. Teaching of financial literacy - repeal.
Page 4, Line 12(1) (a) Satisfactory completion of a course on financial
Page 4, Line 13literacy, as defined in section 22-32-135, which incorporates the
Page 4, Line 14standards on financial literacy developed by the state board of
Page 4, Line 15education pursuant to section 22-7-1005 (2.8), is a condition of high school graduation in the public schools of this state.
Page 4, Line 16(b) School districts and charter schools shall teach a
Page 4, Line 17course on financial literacy in the ninth, tenth, eleventh, or
Page 4, Line 18twelfth grade but are encouraged to teach the course in the eleventh or twelfth grade.
Page 4, Line 19(2) A school district or charter school may utilize any
Page 4, Line 20curriculum the school district or charter school has adopted
Page 4, Line 21pursuant to section 22-32-135, the resource bank created
Page 5, Line 1pursuant to section 22-2-127, or any other alternative programs
Page 5, Line 2or materials. Any programs or materials used in teaching a
Page 5, Line 3course on financial literacy must represent best practices and
Page 5, Line 4be developed using input from experts in the area of personal finances.
Page 5, Line 5(3) This section applies to students in ninth grade on or after September 1, 2026.
Page 5, Line 6(4) (a) (I) For the 2025-26 state fiscal year, the general
Page 5, Line 7assembly shall appropriate money from the general fund to the
Page 5, Line 8department of education for distribution to school districts to support implementation of:
Page 5, Line 9(A) A financial literacy course required to be taught pursuant to subsection (1) of this section; and
Page 5, Line 10(B) The individual career and academic plan requirements described in section 22-2-136 (2)(d).
Page 5, Line 11(II) The department of education shall distribute money
Page 5, Line 12pursuant to subsection (4)(a)(I) of this section to school
Page 5, Line 13districts that do not currently offer a financial literacy
Page 5, Line 14course based on a formula determined by the department of
Page 5, Line 15education. The department of education may determine
Page 5, Line 16eligibility for funding pursuant to this subsection (4)(a) based on attestations from school districts.
Page 5, Line 17(III) Any unexpended money remaining at the end of the 2025-26 state fiscal year from this appropriation:
Page 5, Line 18(A) Does not revert to the general fund or any other fund;
Page 5, Line 19(B) May be used by the department of education in the
Page 6, Line 12026-27 or 2027-28 state fiscal years without further appropriation; and
Page 6, Line 2(C) Must not be used for any purpose other than the purposes set forth in this section.
Page 6, Line 3(b) The department of education may seek, accept, and
Page 6, Line 4expend gifts, grants, or donations from private or public sources
Page 6, Line 5for the purpose of supporting educators in implementing a
Page 6, Line 6financial literacy course pursuant to subsection (1) of this section.
Page 6, Line 7(c) This subsection (4) is repealed, effective July 1, 2028.
Page 6, Line 8SECTION 3. In Colorado Revised Statutes, 22-2-136, amend (2)(b) and (2)(c); and add (2)(d) as follows:
Page 6, Line 922-2-136. Additional duty - state board - individual career and
Page 6, Line 10academic plans - standards - rules. (2) In establishing the standards for
Page 6, Line 11individual career and academic plans, the state board shall ensure, at a minimum, that:
Page 6, Line 12(b) Each individual career and academic plan is accessible to educators, students, and parents;
andPage 6, Line 13(c) Each public school, in assisting students and parents in
Page 6, Line 14creating and maintaining the individual career and academic plans, is in
Page 6, Line 15compliance with the requirements of the federal "Family Educational Rights and Privacy Act of 1974", 20 U.S.C. sec. 1232g; and
Page 6, Line 16(d) (I) Beginning with the 2027-28 school year, each
Page 6, Line 17individual career and academic plan includes a requirement
Page 6, Line 18that, during the student's graduation year, the student has
Page 6, Line 19exposure to federal financial aid eligibility tools and
Page 6, Line 20state-based net price calculators and fills out a free
Page 7, Line 1application for federal student aid or the Colorado application for state financial aid.
Page 7, Line 2(II) Notwithstanding subsection (2)(d)(I) of this section, a
Page 7, Line 3student is not required to fill out a free application for federal
Page 7, Line 4student aid or the Colorado application for state financial aid if:
Page 7, Line 5(A) The student affirmatively declines to fill out the application; or
Page 7, Line 6(B) Authorized school personnel determines it is not feasible for the student to fill out an application.
Page 7, Line 7(III) If a student has not filled out the application or
Page 7, Line 8affirmatively declined to fill out the application pursuant to
Page 7, Line 9subsection (2)(d)(II)(A) of this section by May 1 of the applicable
Page 7, Line 10school year, the public school must indicate on the student's
Page 7, Line 11individual career and academic plan that the student has declined to fill out an application.
Page 7, Line 12SECTION 4. In Colorado Revised Statutes, 22-32-135, amend (4) as follows:
Page 7, Line 1322-32-135. Financial literacy curriculum - definition.
Page 7, Line 14(4) Pursuant to section 22-1-104.9, each school district board of
Page 7, Line 15education is
further encouragedsuccessfulPage 7, Line 16satisfactory completion of a course in financial literacy as a graduation requirement.
Page 7, Line 17SECTION 5. In Colorado Revised Statutes, 23-3.3-106, add (5.5) as follows:
Page 7, Line 1823-3.3-106. Technology to support FAFSA and CASFA -
Page 7, Line 19definitions. (5.5) Any money appropriated to the department for
Page 8, Line 1the implementation of this section may be used for maintenance of the web-based financial aid completion tool.
Page 8, Line 2SECTION 6. Appropriation. (1) For the 2025-26 state fiscal
Page 8, Line 3year, $9,611 is appropriated to the department of higher education for use
Page 8, Line 4by the Colorado commission on higher education and higher education
Page 8, Line 5special purpose programs. This appropriation is from the general fund
Page 8, Line 6and is based on an assumption that the division will require an additional
Page 8, Line 70.1 FTE. To implement this act, the division may use this appropriation for administration.
Page 8, Line 8(2) For the 2025-26 state fiscal year, $210,389 is appropriated to
Page 8, Line 9the department of education for use by student pathways. This
Page 8, Line 10appropriation is from the general fund. To implement this act, the division
Page 8, Line 11may use this appropriation for support to local education providers for student financial literacy initiatives.
Page 8, Line 12SECTION 7. Act subject to petition - effective date. This act
Page 8, Line 13takes effect at 12:01 a.m. on the day following the expiration of the
Page 8, Line 14ninety-day period after final adjournment of the general assembly; except
Page 8, Line 15that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 8, Line 16of the state constitution against this act or an item, section, or part of this
Page 8, Line 17act within such period, then the act, item, section, or part will not take
Page 8, Line 18effect unless approved by the people at the general election to be held in
Page 8, Line 19November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.