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Connecticut Moving Ahead With Vote On Emergency State Response Fund

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(AP) — Connecticut state lawmakers are still pushing ahead with a plan to set aside $500 million in state budget reserves to help backstop delays in federal food and heating assistance funding, even though it appears the federal government shutdown could be nearing an end.

If a deal to reopen the federal government is finalized soon, a spokesperson for Democratic Gov. Ned Lamont said Tuesday the $500 million could help address federal funding cuts in the sweeping tax and spending law dubbed the “One Big Beautiful Bill Act” by Republicans.

There are concerns as to how the massive federal budget law will impact Medicaid, food benefits and other safety net programs in Connecticut.

Meanwhile, at least one Democratic state senator has called for the state to cover the health insurance tax credits under the Affordable Care Act that expire Jan. 1, 2026. The subsidies total $350 million annually in Connecticut.

The bipartisan proposal to create a “state response fund,” announced Monday, is scheduled for a vote during a special legislative session on Wednesday and Thursday.

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