This week’s policy blog includes federal and state updates on topics relevant to Colorado’s life sciences ecosystem: 

• Reauthorization of SBIR/STTR Programs 
• Colorado’s Budget Shortfall and Special Legislative Session 
• Colorado PDAB’s Third Upper Payment Limit Rulemaking Hearing for Enbrel 

Read to learn more about these important issues and how CBSA is engaging. 

Reauthorization of SBIR/STTR Programs 

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs help translate cutting-edge discoveries into real-world solutions, driving economic growth, creating jobs, and improving public health. As a one-pager from Biotechnology Innovation Organization (BIO) explains, the SBIR/STTR Programs provide early-stage, non-dilutive funding to support high-risk, high-reward research, bridging the early investment gap that can prevent breakthroughs from reaching patients. Through a three-phase process, these federal R&D programs help life sciences startups and small businesses develop and commercialize transformative innovations. 

CBSA is continuing to work with our national partners to urge Congress to support and pass an extension of the SBIR/STTR Programs, which are currently set to expire on September 30, 2025. 

Many of CBSA’s members are research-intensive small and large biotechnology companies working on cutting-edge innovations. Most of these are pre-revenue human health companies that take enormous risks to develop the next generation of biomedical breakthroughs. Their pipelines have the potential to benefit millions of patients suffering from diseases for which there are no cures or treatments. These companies are at the center of Congress’ goal to strengthen American competitiveness and SBIR/STTR is a critical component to ensure the United States remains the leader in health advancement. 

A lapse in SBIR/STTR funding would deal a serious blow to American innovation, competitiveness, and small business job creation. Since 1982, these programs have been the largest source of early-stage capital for R&D-driven startups developing life-saving therapies. Even a short-term disruption could significantly harm the high-tech ecosystem and jeopardize critical biomedical progress. Federal agencies could also see their research and technology development stalled by a disruption in these programs. Both small businesses and the agencies need certainty, stability, and predictability to budget and plan for the future. 

SBIR/STTR reauthorization was a key topic discussed during CBSA’s Hill visits as part of the BIO Council of State Bioscience Associations (CSBA) 2025 Fly-In in Washington, D.C. in April—see CBSA’s Policy Blog and LinkedIn post. CBSA emphasized that federal funding provides critical capital for research and development at private companies and academic and research institutions and, in many cases, NIH and NSF grant dollars are deployed through the SBIR/STTR programs. CBSA has continued to advocate for the reauthorization of these critical programs and signed onto a CSBA letter sent to congressional leadership on August 13. 

Colorado’s Budget Shortfall and Special Legislative Session 

Colorado’s 2025 special legislative session wrapped up on August 26. Here are some highlights: 

• A planned overhaul of Colorado’s landmark 2024 artificial intelligence (AI) law was abandoned and implementation of the existing law is being delayed from Feb. 1 to June 30, 2026. This will give the legislature time to revisit changes to the AI regulatory structure during the regular 2026 legislative session. CBSA had been working with Senate Majority Leader Rodriguez to ensure our existing exemptions from the law were retained, but we stepped back when all substantive changes were stripped from his AI bill, SB25B-004 Increase Transparency for Algorithmic Systems. You can read more about what transpired from The Sum & Substance.
• As CBSA’s lobbyists at Colorado Legislative Strategies explain, the legislature passed five bills during the special session to address the state’s budget shortfall, which was the primary reason for a special session being called. House Bill 1001 permanently limits those who make more than $500,000 per year from taking the federal business income tax deduction; House Bill 1002 addresses money held in foreign tax jurisdictions; House Bill 1003 eliminates a tax incentive for insurance companies with home offices; House Bill 1004 allows the state to sell tax credits to insurance companies and C-corporations; and House Bill 1005 eliminates a program for businesses to retain money in exchange for collecting sales taxes, commonly called the “vendor fee.” Finally, House Bill 1006 raises revenue for the Health Insurance Affordability Enterprise (HIAE) through the sale of insurance premium and income tax credits and a one-time $10 million transfer from the Refinance Discretionary Account. 
  • Also see these articles from The Sum & Substance: Special session ends with legislators rolling back five business tax breaks and Colorado is selling tax credits to help balance its budget. Will businesses be interested in buying? 
• Axios summarizes the recent developments: 
  • “State lawmakers returned to the Capitol for a special session last week to raise taxes by repealing existing corporate tax breaks worth roughly $300 million.” 
  • “The governor also tapped the state’s reserve account for about $315 million, lowering it from 15% to 13%.” 
  • “Gov. Jared Polis signed an executive order Thursday to slash $252.2 million in state spending, the final step in closing a $783 million budget hole prompted by President Trump’s megabill.” 
  • “The spending reductions will hurt vulnerable Colorado residents — those on Medicaid health insurance — and higher education institutions, both of which took the brunt of the cuts.” 
• Colorado Legislative Strategies adds that, although there has been some criticism around whether the legislature could be doing more to address the budget shortfall, for the time being leadership and top Democrats have vowed to revisit the budget situation during the regular session, saying the special session was “just the start” of many more cuts to come. Read more from The Colorado Sun. 

Colorado PDAB’s Third Upper Payment Limit Rulemaking Hearing for Enbrel 

On August 22, the Colorado Prescription Drug Affordability Board (PDAB) held its third upper payment limit (UPL) rulemaking hearing for Amgen’s drug Enbrel, the first drug for which the PDAB is attempting to set a UPL. Colorado is the first state PDAB to try to implement this mechanism to control drug costs.  

In advance of the August 22 hearing, CBSA and BIO submitted joint written testimony—see the letter and the appendix on access issues regarding state UPL effectuation. In addition, Amy Goodman, CBSA’s Vice President and Counsel for Policy + Advocacy, provided witness testimony during the hearing. You can view a recording of the full PDAB meeting and UPL hearing. 

During the August 22 hearing, the Board amended its draft UPL rule to reference the Medicare-negotiated Maximum Fair Price (MFP): “The upper payment limit for Enbrel (Etanercept) is set at $583.59 per unit, which is the current Maximum Fair Price for Enbrel. This price per unit will be reviewed and updated annually.” The MFP is 30% to 40% below Enbrel’s net price. 

Pink Sheet writes that the Colorado PDAB’s “decision to use the Medicare price as a proxy for capping reimbursement for Amgen’s Enbrel in the state may confirm predictions that Medicare negotiated drug prices also will influence prices in commercial insurance.” Also see these articles from Bloomberg Law: 

• Bloomberg Law, 8/22/25: Colorado Board Proposes Enbrel’s Medicare Price for Payment Cap 
• Bloomberg Law, 8/12/25: Drug Savings Doubted for Colorado as State Nears First Pay Cap 

The UPL draft rule for Enbrel is open for public comment until October 1. The fourth and presumably final UPL hearing for Enbrel will be held on October 3.