Why is Colorado cutting?

Bonnie Silva, director of the state's Office of Community Living, cited a budget gap that followed the 2025 federal budget law.

Colorado sets 2% LTSS rate cut from July 1, 2026

Colorado will cut long-term services and supports rates 2% starting July 1, 2026, phase in a weekly cap on caregiver hours and slow new DD waiver enrollments, the state said April 8, 2026.

Colorado · Rates · Waivers · State budgets · Policy

xiquinhosilva, Wikimedia Commons, CC BY 2.0

Direct Support News desk · April 8, 2026 · Updated September 26, 2026 · 1 min read

Colorado will cut rates for long-term services and supports by 2% starting July 1, 2026, and will also phase in a weekly cap on caregiver hours and limit new enrollments in its developmental disabilities waiver. Bonnie Silva, director of the state's Office of Community Living, laid out the package on April 8, 2026, citing a budget gap that followed the 2025 federal budget law.

The cuts in detail

Pending final approvals, all LTSS, HCBS and case management services face a 2% rate cut on July 1, 2026. A new weekly limit on hours one caregiver can provide to a single member for services such as personal care and homemaker phases down from 84 hours in July 2026 to 56 hours in July 2027, with exceptions. The state also plans to halve transitions from the waiting list onto the Developmental Disabilities waiver, end automatic moves onto it for youth leaving children's programs, and require some DD waiver members to contribute income toward residential care, with workers exempt. Soft caps on some in-home services began April 1.

Why this matters for providers and DSPs

Colorado agencies face lower rates while also having to recruit more caregivers to cover hours that one worker can no longer provide. Providers should plan staffing now and use the exception process where members need continuity.

Common questions

What cuts did Colorado announce for long-term services?: Pending final approvals, all LTSS, HCBS and case management services face a 2% rate cut on July 1, 2026. A new weekly limit on hours one caregiver can provide to a single member phases down from 84 hours in July 2026 to 56 hours in July 2027, with exceptions.
What changes for the Developmental Disabilities waiver?: The state plans to halve transitions from the waiting list onto the DD waiver, end automatic moves onto it for youth leaving children's programs, and require some DD waiver members to contribute income toward residential care, with workers exempt.
Why is Colorado cutting?: Bonnie Silva, director of the state's Office of Community Living, cited a budget gap that followed the 2025 federal budget law.