Lamont Seeks $168M From Emergency Reserve To Offset Federal Cuts To Health, Housing And Food Aid

CONNECTICUT — Gov. Ned Lamont has submitted a plan to Connecticut legislative leaders to withdraw nearly $168 million from a newly created Emergency State Response Reserve to offset recent federal funding delays and reductions affecting health and human services programs.

The proposal, totaling $167.9 million, marks the first time Lamont has sought to access the reserve, which was established in November under Special Act 25-1. The fund contains $500 million in state surplus dollars and was created in anticipation of potential federal funding reductions.

According to the administration, the proposed expenditures would help reduce health insurance costs for more than 150,000 residents, provide food assistance to more than 35,000 people and help keep approximately 3,500 individuals housed.

The plan includes funding to bolster food banks and pantries affected by changes to the Supplemental Nutrition Assistance Program, replace expiring enhanced health insurance subsidies linked to the Affordable Care Act, and provide interim support for homelessness prevention programs facing federal grant delays. It also would cover lost federal reimbursements for services provided by Planned Parenthood of Southern New England and expand capacity at the state’s 2-1-1 information and referral system.

“We should be supporting programs that increase access to food, healthcare, and homelessness prevention and response,” Lamont said in a statement. “Here in Connecticut we will stand behind them and do what we can to ensure that this most basic assistance remains available.”

Office of Policy and Management Interim Secretary Joshua Wojcik said the funding would help close gaps created by federal actions while supporting vulnerable residents.

“This is a responsible use of taxpayer resources to support our most vulnerable residents,” Wojcik said, adding that the administration continues to assess additional needs.

Under the proposal, $24.6 million would go to community food banks and pantries through June 2027, while $64.1 million would replace expiring enhanced premium tax credits for residents enrolled in Covered Connecticut. Another $50.8 million would address the loss of enhanced federal health insurance subsidies for certain income groups.

Additional allocations include $6.9 million for expiring homelessness grants and supportive housing vouchers, $10.4 million to replace lost federal funding for Planned Parenthood services and Title X programs, $4.7 million to expand 2-1-1 call center capacity and community outreach, and $1.5 million for administrative costs at the Department of Social Services.

As required by law, bipartisan legislative leaders have 24 hours after receiving the plan to review it and, if they choose, disapprove the proposed expenditures before funds are transferred.

If approved, $332 million would remain in the Emergency State Response Reserve. The governor is authorized to make withdrawals from the fund through Feb. 4, 2026, the opening day of the next regular legislative session.