Governor Lamont Submits Plan To Tap Into Emergency State Response Reserve To Maintain Affordability for Connecticut Residents

(HARTFORD, CT) - Governor Ned Lamont today announced that his administration has submitted a plan to the bipartisan leadership of the Connecticut General Assembly to tap into the recently created Emergency State Response Reserve in response to recent federal funding delays and reductions that have been made by the Trump administration and Congressional Republicans to essential health and human services supports that the residents of Connecticut depend on for some of their most basic needs.

This is the first time Governor Lamont has submitted a plan to withdraw funding from the reserve, which was created in November through Special Act 25-1 in anticipation of such federal funding reductions. The reserve contains $500 million in state surplus funding, and the enabling statute authorizes the governor to transfer funding from it to support health and human services programs.

This initial plan, which totals $167.9 million, will reduce the cost of health insurance for more than 150,000 Connecticut residents, provide food for more than 35,000 people, and keep 3,500 people in their homes. Specifically, the funding includes food and nutrition assistance due to changes to the Supplemental Nutrition Assistance Program (SNAP); healthcare coverage support in response to the loss of enhanced federal tax credits for those who receive coverage through the Affordable Care Act; homelessness prevention and response services due to grant delays in the Continuum of Care program; coverage for the loss of funding to services provided by Planned Parenthood of Southern New England; and additional funding to increase 2-1-1 call center capacity in response to an increase in those who are seeking assistance.

"We should be supporting programs that increase access to food, healthcare, and homelessness prevention and response, and 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 which ultimately support the health and safety of our entire country," Governor Lamont said. "These are services that must continue to be supported, and here in Connecticut we will stand behind them and do what we can to ensure that this most basic assistance remains available."

"The Lamont administration is directing this funding to help cover federal gaps in essential government services, healthcare, housing, and nutrition," Office of Policy and Management Interim Secretary Joshua Wojcik said. "This is a responsible use of taxpayer resources to support our most vulnerable residents. We continue evaluating additional needs and addressing concerns within our communities."

Specifically, the plan submitted today contains the following expenditures:

• Funding for the statewide network of community food banks and pantries to increase their capacity to serve residents impacted by the eligibility changes in SNAP through June 30, 2027, in the amount of $24,550,000.
• Replacement of the expiring enhanced premium tax credits for residents enrolled in Covered CT, including adjusting the current assessment on total premiums to reimburse carriers for potentially higher utilization in this program through June 30, 2027, in the amount of $64,100,000.
• Replacement of the loss of enhanced healthcare subsidies for individuals between 100% FPL and 200% Federal Poverty Level (FPL) who are not on Covered CT and 50% of the lost subsidy for individuals between 400% FPL and 500% FPL during calendar year 2026 in the amount of $50,760,000.
• Supplemental payments to federally qualified health centers to help promote access to primary and preventive care for those individuals with incomes below 100% of the FPL at risk of losing coverage due to elimination of all federal health plan subsidies through June 30, 2027, in the amount of $5,000,000 (state share).
• Interim funding for expiring Continuum of Care grants for organizations that provide support to prevent and end homelessness through June 30, 2026, and the continuation of formerly HUD-funded vouchers for supportive housing through June 30, 2027, in the amount of $6,880,000.
• Coverage of the lost federal reimbursement for services provided by Planned Parenthood of Southern New England (PPSNE) facilities during the period July 4, 2025, through July 3, 2026, in the amount of $8,500,000. Replace funding for PPSNE's frozen federal Title X grant, which provides individuals with comprehensive family planning and related preventive health services, in the amount of $1,900,000.
• Additional funding to 2-1-1 to support additional call volume and Community Action Agencies to support community outreach and assistance for SNAP recipients in understanding and meeting new eligibility requirements through June 30, 2027, in the amount of $4,700,000.
• Operational costs for the Connecticut Department of Social Services to help Medicaid and SNAP clients meet new eligibility rules and program requirements to the extent possible, including modifying information systems and increasing vendor call center support, in the amount of $1,540,000.

As required in Special Act 25-1, bipartisan legislative leaders have 24 hours upon receipt of the plan to review and - if it is their will - disapprove of the expenditures before the funds can be legally transferred.

Following the withdrawal of this funding, $332 million will remain in the reserve. Governor Lamont and his budget staff continue to monitor the situation and may identify additional needs for its use. Special Act 25-1 authorizes the governor to make expenditures from the reserve until February 4, 2026, which is the opening day of the next regular legislative session.

**Download: Lamont administration letter to bipartisan legislative leaders on use of the Emergency State Response Reserve