by Karla Ciaglo CTNewsJunkie
HARTFORD, CT — As the nation endures its longest federal government shutdown on record, Connecticut leaders are moving to shield the state’s most vulnerable residents from the fallout.
Gov. Ned Lamont, joined by top Republican and Democratic lawmakers, announced the creation of a $500 million contingency reserve — a bipartisan safeguard meant to keep food stamps, nutrition vouchers, heating aid, and health insurance subsidies flowing if federal funding remains stalled.
“This is about readiness, not spending,” Lamont said. “We’re giving ourselves the ability to act if Washington doesn’t.”
The reserve temporarily redirects money normally used to pay down pension liabilities into a restricted account within the state’s $4.3 billion rainy-day fund. It can be tapped only if programs such as SNAP, WIC, LIHEAP or Affordable Care Act subsidies lose federal support. Any use of the fund must be approved by a six-member bipartisan panel of legislative leaders, and a tied vote automatically blocks the spending.
Lamont said the account was designed to carry Connecticut through February, when the regular legislative session begins, and would revert to pension payments by June 30 if unused.
The state acted after a weekend of confusion at the U.S. Department of Agriculture, which initially released two-thirds of November SNAP benefits from a reserve fund, prompting Connecticut to cover the remaining third — about $28 million. The next morning, the agency instructed states to “undo” the full payments, but Lamont said Connecticut would not claw them back and expects reimbursement as earlier today a federal judge blocked enforcement of the memo.
“Over the last month, there’s been a lot of on-again, off-again — a lot of risk to our citizens,” Lamont said, crediting Social Services Commissioner Andrea Barton Reeves and her staff for working overtime to ensure families received full SNAP payments Saturday morning.
The $500 million figure stems from projected costs: SNAP and WIC together consume about $74 million a month, and LIHEAP about $80 million. If all three programs were cut, the state would need roughly $100 million per month to fill the gap. A collapse of ACA premium subsidies could add $350 million annually.
Lamont said it is too early to say whether the fund would cover health insurance aid, adding that the state expects clarity on federal subsidies by year’s end and may extend open enrollment into January if uncertainty persists. He said he hopes Congress maintains the subsidies so Connecticut does not have to consider alternative health insurance options for residents.
Senate President Pro Tempore Martin Looney, D-New Haven, called the agreement “a bond to bridge us over until February” and said federal instability had created “a Sophie’s Choice between food aid and insurance subsidies.”
House Speaker Matt Ritter, D-Hartford, called the fund both a practical fix and a moral necessity.
“If I was ever the speaker of a chamber that left town while people went hungry, I would resign in five seconds,” he said.
House Minority Leader Vincent Candelora speaks about a state contingency fund in Hartford, CT on Nov. 10, 2025. Credit: Karla Ciaglo / CTNewsJunkie
House Minority Leader Vincent Candelora, R-North Branford, endorsed the measure and emphasized its temporary, bipartisan nature.
“We’re not creating a slush fund. We’re creating a safety net that expires when we’re back in session,” he said. “This shows how government should work in a crisis — both parties at the same table, focused on solutions, not politics.”
Candelora noted that even with the reserve, Connecticut remains on solid fiscal footing, with a $4.3 billion surplus and more than $10 billion in supplemental pension payments since 2021.
State Treasurer Erick Russell said the plan fits within Connecticut’s fiscal guardrails under an extraordinary-circumstances clause, adding that more than $1.2 billion in volatility-cap transfers are already planned this year.
“Creating additional reserves and having flexibility is fiscally responsible,” he said, noting that the state will still contribute $1.5 billion to its pension fund in 2025.
Lt. Gov. Susan Bysiewicz said the need for action was clear after visiting food banks and seeing empty shelves. She said Foodshare and other hunger-relief groups are working hard but cannot match the scale of federal aid.
“Food banks are a supplement to SNAP, not a solution,” Bysiewicz said.
Lawmakers plan to move quickly. The House will take up the measure Wednesday, followed by the Senate on Thursday. If Congress passes a spending bill or extends a continuing resolution before then, the reserve will remain untouched and revert automatically to pension funding. If gridlock persists, Lamont can propose limited spending subject to bipartisan review.
“This money may never leave the account,” Lamont said. “But people need to know it’s there.”