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Colorado Will Cover 75% of Flood Costs Near Aspen Acres, Gold Mountain Burn Scars

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Published on October 05, 2026
Colorado Will Cover 75% of Flood Costs Near Aspen Acres, Gold Mountain Burn ScarsColorado Springs city hall plaza — Landmark Weather Coverage Backdrop
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Colorado Gov. Jared Polis announced Friday that the state will cover 75% of the local cost share for flood-risk reduction projects near the Aspen Acres and Gold Mountain burn scars, a move that slashes the financial burden on Ouray, Pueblo, and Custer counties as they race to stabilize hillsides before the next big rainstorm. The announcement targets Emergency Watershed Protection projects meant to blunt flash floods and mudslides that have repeatedly menaced these communities since the two wildfires tore through southern and southwestern Colorado this summer.

Under the federal Emergency Watershed Protection program run by the USDA Natural Resources Conservation Service, the federal government picks up as much as 75% of construction costs for emergency flood mitigation, but requires a local public entity to sponsor the work and cover the remaining 25% match. The Colorado Governor's Office said that before Friday's announcement, counties were on the hook for the full 25% local share; with the state now covering three-quarters of that share, the counties' out-of-pocket obligation drops to 6.25% of eligible construction costs.

Two Massive Fires, One Dangerous Summer

The relief comes after a brutal fire season left behind two of the state's largest burn scars in recent memory. The Aspen Acres Fire ignited June 29 and burned over 102,000 acres across Custer, Pueblo, Huerfano, and Fremont counties, destroying 324 homes and more than 850 structures total, making it the seventh-largest wildfire in Colorado history, according to the Colorado Division of Homeland Security and Emergency Management. The blaze forced more than 11,000 residents to evacuate during peak summer conditions.

Roughly two miles northeast of Ouray, the Gold Mountain Fire started June 27 and burned more than 39,500 acres in the Uncompahgre National Forest, tearing across steep, inaccessible terrain spanning Ouray, Gunnison, Montrose, and Hinsdale counties, per the City of Ouray. Both fires stripped hillsides of vegetation. On the Aspen Acres burn scar, a hard crust can send rainwater running off quickly.

Flooding Has Already Turned Deadly

Those fears weren't hypothetical. On August 16, an 80-year-old Beulah resident was swept away by flash floodwaters near Highway 78 after heavy rain hit the Aspen Acres burn scar, with emergency teams recovering his body two miles downstream, according to CBS News Colorado. Less than two weeks earlier, on July 29, crews rescued 17 vacationers trapped on the second floor of rental properties in Ouray County's Cutler Creek area after mud and debris from the Gold Mountain burn scar flooded ground levels, the Ouray County Plaindealer reported; three homes in nearby Ponderosa Village were rendered uninhabitable by the surge.

The runoff has also repeatedly shut down U.S. Highway 550 between Ouray, Ridgway, and Silverton through July and August, isolating mountain communities and disrupting peak tourism season in the San Juan Mountains, per the Colorado Division of Homeland Security and Emergency Management. And in Beulah, the local water utility requested federal emergency aid in August after heavy rain washed black silt and debris off the Aspen Acres burn scar into North Creek, threatening the town's public drinking water supply, as detailed by The Colorado Sun.

Why State Money Became Essential

The state's cost-share pledge fills a gap left by the federal government's response to Colorado's disaster request. Polis formally asked for a federal Major Disaster Declaration on August 23, covering the incident period of June 27 through July 29 and citing combined damages from the wildfires and the debris flows that followed, a request that brought together local commissioners, state agencies, and congressional representatives. The Governor’s Office described the declaration as partially approved and said Public Assistance was authorized. The governor's new commitment to cover most of the local match will help Ouray, Pueblo, and Custer counties pursue flood-risk reduction projects.