Connecticut Proposes $167.9M to Enhance Health Insurance Affordability

Connecticut Governor Ned Lamont's administration has submitted a proposal to access the Emergency State Response Reserve, responding to federal funding delays impacting state health and human services. This $500 million reserve, established under Special Act 25-1, was designed to anticipate these potential shortfalls, marking the first instance where the governor seeks to leverage it against federal aid reductions.

The proposed $167.9 million allocation aims to tackle health insurance affordability for over 150,000 residents, provide nutritional support to 35,000 individuals, and ensure housing stability for 3,500 people. This funding will address several critical areas, including SNAP adjustments, support for healthcare coverage amidst diminishing federal tax credits under the Affordable Care Act, and services for homelessness prevention due to grant delays.

Moreover, the funds intend to bridge a gap from reduced support for Planned Parenthood of Southern New England and enhance 2-1-1 call center capabilities against rising demand. Special Act 25-1 grants legislative leaders a 24-hour period to review the spending plan before reserve funds are deployed. Upon approval, $332 million will remain in the reserve, with ongoing assessments from the governor's office to handle future needs. This provision remains active until February 4, 2026.