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.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
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) In collaboration with educators, administrators, policymakers,
Page 2, Line 4and community leaders, the Colorado department of education has
Page 2, Line 5developed rigorous state personal financial literacy standards and has
Page 2, Line 6made robust resources available to advance high-quality instruction in this vital subject area;
Page 2, Line 7(b) Research confirms that a course that incorporates all of the
Page 2, Line 8state's existing financial literacy standards taught in the eleventh or
Page 2, Line 9twelfth grade will deliver the greatest impact by empowering students
Page 2, Line 10with comprehensive financial management skills at a time when they are
Page 2, Line 11most ready to apply the skills. Local education providers have broad
Page 2, Line 12discretion to determine the method of implementing a financial literacy
Page 2, Line 13course, the curriculum and materials used for teaching a financial literacy
Page 2, Line 14course, including practicing filling out the federal or state financial aid
Page 2, Line 15forms, the licensing and certification requirements for teaching a financial
Page 2, Line 16literacy course, and existing local graduation requirements a financial literacy course may fulfill.
Page 2, Line 17(c) Research shows that education and training culminating in
Page 2, Line 18credentials such as industry certificates, apprenticeships, associate
Page 2, Line 19degrees, and bachelor degrees, among other business and industry-based experiences, are necessary to earn a living;
Page 2, Line 20(d) Information needed for, and practice filling out, the federal or
Page 3, Line 1state financial aid applications is a key component to understanding how
Page 3, Line 2additional training beyond high school can be financially supported.
Page 3, Line 3Additionally, practicing completing the federal or state financial aid
Page 3, Line 4applications, especially while students are still in high school, supports
Page 3, Line 5access to different career pathway options because financial aid is often
Page 3, Line 6the vehicle students use to pay for tuition, fees, equipment, and other expenses associated with additional training beyond high school.
Page 3, Line 7(e) Understanding how to access career-aligned resources and
Page 3, Line 8supports is integral to the way students and families navigate training and
Page 3, Line 9educational resources, which is why the free application for federal
Page 3, Line 10student aid is a critical component of the state's financial literacy quality
Page 3, Line 11standards. Financial literacy education and Colorado's individual career
Page 3, Line 12and academic plan can help families understand how to obtain federal or
Page 3, Line 13state financial aid to support students in pursuing additional education and career training.
Page 3, Line 14(f) In 2023, through the federal "FAFSA Simplification Act", the
Page 3, Line 15free application for federal student aid was simplified, reducing the
Page 3, Line 16number of questions from 100 to 30 and reducing the financial information needed on the application;
Page 3, Line 17(g) In 2024, the Colorado general assembly passed the Colorado
Page 3, Line 18promise tax credit, which makes students who attend public institutions
Page 3, Line 19and have a family income of $90,000 or less eligible for a complete
Page 3, Line 20reimbursement of any out-of-pocket tuition and fees paid for the student's
Page 3, Line 21education; however, students must fill out a federal or state financial aid application in order to qualify for the tax credit; and
Page 3, Line 22(h) Colorado students can magnify the impact of state investments
Page 3, Line 23in higher education by accessing federal money to pursue postsecondary
Page 4, Line 1education and by earning credentials to enhance the student's income-earning potential.
Page 4, Line 2(2) Therefore, the general assembly declares it is essential to ensure that prior to graduation, Colorado high school students:
Page 4, Line 3(a) Complete a course that incorporates all of the financial literacy standards developed by the Colorado department of education; and
Page 4, Line 4(b) Understand the information needed to practice using federal
Page 4, Line 5and state financial aid applications if students intend to seek postsecondary education credentials.
Page 4, Line 6SECTION 2. In Colorado Revised Statutes, 22-2-136, amend (2)(b) and (2)(c); and add (2)(d) as follows:
Page 4, Line 722-2-136. Additional duty - state board - individual career and
Page 4, Line 8academic plans - standards - rules. (2) In establishing the standards for
Page 4, Line 9individual career and academic plans, the state board shall ensure, at a minimum, that:
Page 4, Line 10(b) Each individual career and academic plan is accessible to educators, students, and parents;
andPage 4, Line 11(c) Each public school, in assisting students and parents in
Page 4, Line 12creating and maintaining the individual career and academic plans, is in
Page 4, Line 13compliance with the requirements of the federal "Family Educational Rights and Privacy Act of 1974", 20 U.S.C. sec. 1232g; and
Page 4, Line 14(d) (I) Beginning with the 2027-28 school year, each
Page 4, Line 15individual career and academic plan includes a requirement
Page 4, Line 16that, during the student's graduation year, the student has
Page 4, Line 17exposure to federal financial aid eligibility tools and net price
Page 4, Line 18calculators and practices filling out a free application for
Page 4, Line 19federal student aid or the Colorado application for state financial aid.
Page 5, Line 1(II) Notwithstanding subsection (2)(d)(I) of this section, a
Page 5, Line 2student is not required to practice filling out a free application
Page 5, Line 3for federal student aid or the Colorado application for state financial aid if:
Page 5, Line 4(A) The student or the student's parent or legal guardian affirmatively declines to practice filling out the application; or
Page 5, Line 5(B) Authorized school personnel determines it is not feasible for the student to practice filling out an application.
Page 5, Line 6SECTION 3. In Colorado Revised Statutes, 22-32-135, amend (4) as follows:
Page 5, Line 722-32-135. Financial literacy curriculum - definition - repeal.
Page 5, Line 8(4) (a) Each school district board of education
is further encouraged toPage 5, Line 9
adopt successful completion of a course in financial literacy as aPage 5, Line 10
graduation requirementPage 5, Line 11literacy standards described in section 22-7-1005 (2.8) into a course that is required for high school graduation.
Page 5, Line 12(b) (I) For the 2025-26 state fiscal year, the general
Page 5, Line 13assembly shall appropriate money from the general fund to the
Page 5, Line 14department of education for distribution to school districts to support implementation of:
Page 5, Line 15(A) A course required to be taught pursuant to subsection (4)(a) of this section; and
Page 5, Line 16(B) The individual career and academic plan requirements described in section 22-2-136 (2)(d).
Page 5, Line 17(II) The department of education shall distribute money
Page 5, Line 18pursuant to subsection (4)(b)(I) of this section to school
Page 6, Line 1districts that do not currently offer a course based on a
Page 6, Line 2formula determined by the department of education. The
Page 6, Line 3department of education may determine eligibility for funding
Page 6, Line 4pursuant to this subsection (4)(b)(II) based on attestations from school districts.
Page 6, Line 5(III) Any unexpended money remaining at the end of the 2025-26 state fiscal year from this appropriation:
Page 6, Line 6(A) Does not revert to the general fund or any other fund;
Page 6, Line 7(B) May be used by the department of education in the
Page 6, Line 82026-27 or 2027-28 state fiscal year without further appropriation; and
Page 6, Line 9(C) Must not be used for any purpose other than the purposes set forth in this subsection (4).
Page 6, Line 10(IV) The department of education may seek, accept, and
Page 6, Line 11expend gifts, grants, or donations from private or public sources
Page 6, Line 12for the purpose of supporting educators in implementing a course pursuant to subsection (4)(a) of this section.
Page 6, Line 13(V) This subsection (4)(b) is repealed, effective July 1, 2028.
Page 6, Line 14SECTION 4. In Colorado Revised Statutes, 23-3.3-106, add (5.5) as follows:
Page 6, Line 1523-3.3-106. Technology to support FAFSA and CASFA -
Page 6, Line 16definitions. (5.5) Any money appropriated to the department for
Page 6, Line 17the implementation of this section may be used for maintenance of the web-based financial aid completion tool.
Page 6, Line 18SECTION 5. Appropriation. (1) For the 2025-26 state fiscal
Page 6, Line 19year, $9,611 is appropriated to the department of higher education for use
Page 7, Line 1by the Colorado commission on higher education and higher education
Page 7, Line 2special purpose programs. This appropriation is from the general fund and
Page 7, Line 3is based on an assumption that the division will require an additional 0.1
Page 7, Line 4FTE. To implement this act, the division may use this appropriation for administration.
Page 7, Line 5(2) For the 2025-26 state fiscal year, $210,389 is appropriated to
Page 7, Line 6the department of education for use by student pathways. This
Page 7, Line 7appropriation is from the general fund. To implement this act, the division
Page 7, Line 8may use this appropriation for support to local education providers for student financial literacy initiatives.
Page 7, Line 9SECTION 6. Act subject to petition - effective date. This act
Page 7, Line 10takes effect at 12:01 a.m. on the day following the expiration of the
Page 7, Line 11ninety-day period after final adjournment of the general assembly; except
Page 7, Line 12that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 7, Line 13of the state constitution against this act or an item, section, or part of this
Page 7, Line 14act within such period, then the act, item, section, or part will not take
Page 7, Line 15effect unless approved by the people at the general election to be held in
Page 7, Line 16November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.