Connecticut Governor Taps Emergency Funds to Support Vital Services

Ned Lamont, the Governor of Connecticut, has proposed a plan to utilize the state’s emergency response reserve to sustain critical health and human services programs. This initiative aims to address the financial challenges resulting from recent delays and reductions in federal funding, particularly those implemented during the administration of former President Donald Trump. The reserve currently holds $500 million, and the governor’s plan involves a transfer of $167.9 million from these funds.

Addressing Immediate Needs

The funding will significantly impact over 150,000 residents by reducing health insurance costs, providing food assistance to more than 35,000 individuals, and helping to keep 3,500 people in their homes. State Representative Susan Johnson (D-Windham) expressed her support, 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 emergency funds will support essential services, including food and nutrition assistance resulting from changes to the Supplemental Nutrition Assistance Program (SNAP), healthcare coverage adjustments due to the loss of federal tax credits under the Affordable Care Act, and homelessness prevention initiatives related to budget delays affecting the Continuum of Care program. Additional funding will also cover services provided by Planned Parenthood of Southern New England and enhance operations at the 2-1-1 call center.

Comprehensive Financial Strategy

Representative Gregg Haddad (D-Mansfield) praised Lamont’s relief plan, emphasizing its significance in shielding 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 noted.

The financial strategy includes various expenditures aimed at enhancing community support. This encompasses $24.55 million to bolster the statewide network of community food banks and pantries until June 2027, as well as $64.1 million to replace expiring premium tax credits for the Covered Connecticut program during the same period. An additional $50.76 million will replace lost healthcare subsidies for eligible individuals not enrolled in Covered CT for the 2026 calendar year.

Moreover, the plan allocates $6.88 million for interim funding of organizations focused on preventing and ending homelessness through June 2026, and $8.5 million to cover lost federal reimbursements for services provided by Planned Parenthood facilities from July 4, 2025, to July 3, 2026. An operational budget of $1.54 million is set aside for the Connecticut Department of Social Services to assist Medicaid and SNAP clients in meeting new eligibility rules and requirements.

Haddad emphasized the importance of maintaining middle-class affordability: “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 in the wake of the Trump administration’s deep cuts.”

This marks the first instance in which Governor Lamont has proposed withdrawing funds from the emergency reserve, established in November 2021 under Special Act 25-1. The reserve was created in anticipation of potential federal funding reductions.

Governor Lamont stated, “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 who are most in need and ultimately support the health and safety of our entire country.”

As Connecticut moves forward with this plan, the governor reassured residents of the state’s commitment to ensuring that essential services remain available during these challenging times.