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CT Creates $330M Fund To Respond To Potential Federal Cuts To State Programs

The state Capitol building in Hartford, Connecticut, on Thursday, Feb. 15, 2024. Credit: Doug Hardy / CTNewsJunkie

by Donald Eng The New Haven independent

HARTFORD, CT — In its first real act of the new session, the General Assembly moved to create a $330 million fund to mitigate potential federal funding cuts to social services, housing and healthcare programs.

Senate Bill 83 establishes a federal cuts response fund of $330.8 million. The funds came from the unspent portion of the $500 million budget reserve fund that the state established during a November special session for responding to federal cuts. The bill allows the Office of Policy and Management secretary to transfer funds to any agency to carry out the fund’s intent, and gives the legislature the authority to disapprove any such transfer by a majority vote.

“It was prudent to set it (the fund) aside then, and it’s prudent to continue to set is aside now,” said state Rep. Maria Horn, D-Salisbury. 

House Speaker Matt Ritter answers a question during a media briefing in his office at the State Capitol on Feb. 5, 2026. Credit: Donald Eng / CTNewsJunkie

Majority Leader Jason Rojas of East Hartford acknowledged that the fund had been established to allow the state to react while the legislature was not in session — and had included specific language expiring when the General Assembly reconvened. He said though that the ability to respond to federal actions quickly was paramount.

“The only argument is that we’re in session now and therefore we shouldn’t do this,” he said. “But it really is about ensuring that the State of Connecticut can respond in a timely manner to things that are deemed to be critical and are of an emergency nature.”

State Rep. Toni Walker, D-New Haven, the House chair of the Appropriations Committee, said the funds would go to constituents who needed help quickly.

“When we worry about child care, when we worry about health care, when we worry about housing, multiple things – homeless, food shares – we’ve got to have a quick turnaround,” she said. “That’s what government’s supposed to do, as much as it can. It’s not a perfect fit and it’s not a fix. It is a temporary bridge to help the people of Connecticut.”

For example, Ritter said, a cut could be announced on a Friday afternoon.

“By the time we get back in and vote it could be Wednesday,” he said. “That could be five days where someone doesn’t have a benefit they need dearly, so I think the speed at which he (Gov. Ned Lamont) can work is important.”

The measure passed the Senate on Wednesday 28-8, with Republicans Heather Somers of Groton, Jason Perillo of Shelton and Tony Hwang of Fairfield joining the Democrats in favor of passage. The following day the House approved it 97-48 in a mostly party-line vote.

Senate Minority Leader Stephen Harding, R-Brookfield, talks about the Senate special session on Nov. 13, 2025 at the Capitol in Hartford, CT. Credit: Donald Eng / CTNewsJunkie

Before the Senate vote, Minority Leader Stephen Harding of Brookfield, backed by most of his party’s members and House Minority Leader Vincent Candelora of North Branford, had denounced the plan as “the governor’s reelection fund.”

“Today we come back into session and we can appropriate directly as a legislature who holds the purse strings for this state to pay for anything that we believe we need to offset with state dollars that are being cut federally, not the governor,” he said. “And I find it ironic that the party that champions the No Kings rallies and No Kings efforts is the same exact party now that is allowing one man to be king with an additional $500 million in an election year.”

Candelora, who had supported the creation of the response fund in November, said the legislature was “punting our job” of appropriating funds for initiatives and programs.

“$330 million is being given to the governor” Candelora said. “The governor can sprinkle money around to any initiatives he so chooses behind closed doors. There’s no ability for the legislature to weigh in unless you happen to have the governor’s phone number.”

State Sen. Ryan Fazio, R-Greenwich, who is one of the Republicans running for governor in November, called it “a sad day” in Connecticut.

“We as legislators were elected to exercise our constitutional powers on behalf of our residents and constituents, on behalf of taxpayers, to ensure that every single public dollar that our constituents worked hard for is carefully spent, with oversight, with checks and balances,” he said. “This is not what we should be allowing in the Constitution State.”

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