Connecticut Plans $5.2M Emergency Funding for Homelessness Amid Federal Cuts

Connecticut Governor Ned Lamont plans to submit a funding proposal to the state's General Assembly leadership to utilize the Emergency State Response Reserve for homelessness prevention and response services. The reserve, established by legislation in November, comprises $500 million in surplus funds aimed to offset federal cuts to essential health and human services programs, including those initiated by recent federal budget decisions. The proposed allocation includes at least $5.2 million to support providers funded through the U.S. Department of Housing and Urban Development's Continuum of Care program, which has been paused nationwide, thereby risking disruption in vital homelessness services. The Continuum of Care program is a primary federal grant mechanism for homelessness prevention and support, and the pause has the potential to impact families, veterans, and vulnerable populations dependent on these resources. Lamont's plan also addresses losses related to reduced federal tax credits for health insurance coverage, proposing an allocation to mitigate impacts on tens of thousands of Connecticut residents who access coverage through Access Health CT. The legislative process allows 24 hours for review and possible disapproval by Connecticut's bipartisan leaders before funds are transferred, ensuring oversight in deploying these emergency resources. This approach highlights state-level measures to bridge gaps caused by federal funding changes and maintain continuity in critical social services.