Gov. Jared Polis will convene the legislature on Aug. 21 to enact cuts to the state budget amid a $1 billion deficit, even as he is instituting a hiring freeze.

The governor said the hiring freeze in state agencies will start on Sept. 1.  

The governor confirmed that, in addition to spending reductions, the special session will deal with AI regulation. Lawmakers approved new AI regulations last year. They are expected to go into effect Feb. 1, 2026.

The AI law established rules around the use of artificial intelligence, primarily in employment, health care, education, and government practices, where, backers said, the risk of bias or discrimination exists. Businesses have argued that the new law is problematic, potentially penalizing mom-and-pop end users of the technology, instead of the big companies that created the AI software. 

Policymakers’ main challenge in the Aug. 21 session will be instituting cuts totaling $955 million in general funds, the result, according to Democrats, of federal tax policy changes that came out the budget adopted by Congress and signed by President Donald Trump on July 4 but which Republicans argued is a problem of the state’s own making.

Editor’s Note: This story will be updated.