This legislative session, the Colorado Chamber continues to advocate for policies that advance its 10-year strategic action plan for a stronger business climate. A key focus of that plan is improving Colorado’s cost of living, which currently ranks among the highest in the nation and remains one of the most pressing economic challenges facing employers and workers.
The cost and availability of child care plays a major role in the state’s cost-of-living crisis, with many business leaders linking the issue to workforce shortages. In 2024, the average annual cost of child care in Colorado reached $20,978 for an infant and $17,479 for a toddler, placing Colorado among the most expensive states in the nation. At the same time, Colorado faces a critical shortage of licensed child care seats, with more than half of the state considered a child care desert. According to ReadyNation, the shortage of infant and toddler care costs Colorado an estimated $2.7 billion each year in lost earnings, productivity and revenue.
To address these challenges, the Chamber’s Vision 2033 plan prioritizes strengthening and expanding access to child care. The Chamber’s 2026 legislative agenda also highlights improving affordability and availability as key workforce and cost-of-living solutions.
That’s why the Colorado Chamber’s Government Affairs Council last month took a support position on Senate Bill 20, which aims to streamline and modernize the child care licensing process. The bill would create a centralized digital system to reduce paperwork, move toward more consistent state-led inspections, limit reliance on third-party inspectors and allow provisional licenses for providers delayed by local zoning approvals. It would also establish a task force to recommend further improvements to the licensing and inspection system.
By cutting red tape and modernizing the licensure process, SB 20 would help qualified providers open sooner and operate more sustainably, increasing the number of available child care slots across the state.
Meghan Dollar, senior vice president of governmental affairs and political operations for the Chamber, testified in favor of the bill yesterday afternoon.
“By updating administrative frameworks and reducing unnecessary red tape, SB 20 helps childcare providers operate more efficiently while maintaining high standards of safety and quality,” Dollar said in her testimony. “These improvements not only make it easier for providers to navigate compliance but also encourage innovation and expansion in a sector that is critical to Colorado’s workforce and economy.”
The bill passed in the Senate Education Committee unanimously.