Colorado Saves $200M for Heat Pumps Despite Federal Cuts

Despite a wave of federal green budget cuts, Colorado just locked in $200 million to help families afford cleaner, cheaper home heating.

The Denver Regional Council of Governments preserved funding for its new Power Ahead Colorado program after only a brief scare in early 2025. The Environmental Protection Agency grant survived policy reversals and is now ready to deploy across the state.

The money will help low-income families replace old furnaces with modern electric heat pumps. These devices work like a reversible air conditioner, keeping homes warm in winter and cool in summer while running on electricity instead of gas.

As Colorado's power grid shifts from coal to solar and wind, these electric heat pumps get cleaner every year. That means lower energy bills for families and fewer greenhouse gases heating the planet.

The program sets aside funding for energy audits, furnace replacements, and help for landlords meeting new state emissions rules. About $6 million will support creative local projects, like California's program that installs temporary electric water heaters after failures so homeowners can try the technology before buying.

Program officials know heat pumps sound unfamiliar to many people. That's why part of the funding goes toward education, helping families understand how the technology works and how much money they could save.

The Ripple Effect

Nearly 5,000 Coloradans will receive training for clean energy jobs through this program. That means more skilled workers ready to install heat pumps, conduct energy audits, and help buildings reduce emissions.

The program aims to untangle the complicated web of government codes, contractors, and efficiency standards that can overwhelm homeowners. By connecting all these dots, Power Ahead Colorado becomes a trusted guide through the clean energy transition.

Program manager Robert Spotts calls it "an impressive, unprecedented kind of opportunity" for the state. The Denver Regional Council of Governments sits between state agencies, local governments, and nonprofits, making it perfect for coordinating this massive effort.

For families struggling with high heating bills, this funding means real relief is coming. For workers looking for stable careers, thousands of new clean energy jobs are opening up.

Colorado just proved that even when federal priorities shift, committed local leaders can protect programs that help people and the planet at the same time.