Connecticut Governor Ned Lamont has proposed a plan to utilize the state’s emergency response reserve to sustain critical health and human services programs amid federal funding challenges. This plan will draw from a reserve that currently holds $500 million in state surplus, allowing for the transfer of $167.9 million to support various initiatives. The move is a direct response to recent delays and cuts in federal funding under the previous administration.
Impact on Residents and Services
The funding aims to alleviate financial strain for over 150,000 Connecticut residents by reducing health insurance premiums. Additionally, it is set to provide food assistance for more than 35,000 individuals and help maintain housing for 3,500 residents facing potential homelessness. State Representative Susan Johnson (D-Windham) expressed her approval, stating, “I’m glad the governor understands the horrible impact the budget cuts passed by Congressional Republicans and signed into law by POTUS Trump will have on our average income residents in CT.”
The allocation from the reserve will cover various essential services, including food and nutrition assistance linked to changes in the Supplemental Nutrition Assistance Program (SNAP), healthcare coverage adjustments due to lost federal tax credits from the Affordable Care Act, and homelessness prevention resources affected by budget delays in the Continuum of Care program. Funding will also address service gaps at Planned Parenthood of Southern New England and enhance support for the 2-1-1 call center.
Details of the Funding Plan
According to State Representative Gregg Haddad (D-Mansfield), this plan represents a significant effort to shield residents from rising costs and federal funding cuts. “This $167.9 million provides vital support: it will lower health insurance premiums for 150,000 residents and ensure 35,000 people have access to nutritious food, along with other initiatives,” he said.
The proposed expenditures include:
- $24.55 million to bolster community food banks and pantries through June 2027.
- $64.1 million to replace expiring premium tax credits enrolled in Covered CT until June 2027.
- $50.76 million to replace lost enhanced healthcare subsidies for non-Covered CT individuals in 2026.
- $5 million for supplemental payments to federally qualified health centers to promote access to primary care for low-income individuals through June 2027.
- $6.88 million in interim funding for expiring Continuum of Care grants aimed at preventing homelessness through June 2026.
- $8.5 million to cover lost federal reimbursements for services provided by Planned Parenthood facilities from July 4, 2025, to July 3, 2026.
- $4.7 million to support increased call volumes at the 2-1-1 centers and Community Action Agencies.
- $1.54 million for operational costs at the Connecticut Department of Social Services to assist Medicaid and SNAP clients.
Haddad emphasized the importance of this funding in maintaining affordability for middle-class families, stating, “By backfilling the loss of enhanced federal healthcare tax credits, this plan prevents a massive spike in monthly premiums for families who rely on the Affordable Care Act. It preserves support for families struggling with food insecurity.”
This marks the first instance in which Lamont has sought to withdraw funds from the emergency reserve, which was established in November 2023 under Special Act 25-1 to anticipate reductions in federal funding. Lamont remarked, “We should be supporting programs that increase access to food, healthcare, and homelessness prevention. It is a shame that the federal government is cutting back on these services that provide a safety net for those most in need and ultimately support the health and safety of our entire country.”
The governor’s initiative demonstrates a commitment to ensuring essential services remain available to vulnerable populations in Connecticut, even in the face of federal funding uncertainties.
