CT Draws $18.7M From Emergency Fund To Offset Federal Funding Cuts

by Karla Ciaglo CTNewsJunkie

HARTFORD, CT — Connecticut officials announced a second draw from the state’s $500 million Emergency State Response Reserve on Thursday, committing $18.7 million to offset federal funding cuts and administrative disruptions that state leaders said are threatening food assistance, health coverage, mental health services, and school-based support programs.

The new allocation brings total spending from the reserve to roughly $175 million since December, leaving about $330 million available as lawmakers prepare to convene for the 2026 legislative session on Feb. 4.

The bill authorizing the reserve passed the House 126-20 in November with broad support including 28 Republicans. The Senate vote was 27-8.

In announcing the latest package, state leaders said the reserve has become a stabilizer amid federal uncertainty, pointing to recent funding whiplash, including an announced $2 billion cut to federal mental health and substance-use services that was reversed within a day, and proposed reductions in CDC support for local public health departments that were rescinded within hours.

The $18.7 million plan includes $11.4 million for Department of Social Services eligibility-system upgrades needed to implement new SNAP and Medicaid rules under Public Law 119-21, known as the “One Big Beautiful Bill Act.” It also provides $2 million to expand community health workers to help residents navigate eligibility changes through June 30, 2027, $830,000 to replace funding for school-based mental health counselors, and $4.5 million to backfill canceled full-service community school grants through June 30, 2027.

Officials said the latest draw includes significant compliance-related costs, led by technology upgrades needed to implement new federal eligibility standards. Lamont said the $11.4 million state investment is paired with roughly $58 million in federal support, bringing the total price tag close to $70 million, and noted that Connecticut is the first state approved for a structure covering up to 90% of those costs through federal matching.

House Speaker Matt Ritter said a federal shutdown could occur “tomorrow or Saturday morning,” which would be the second after a 42-day shutdown in November. He also credited House Republicans for supporting the original emergency authority, describing the reserve’s creation as a bipartisan move to protect SNAP and health coverage.

US Rep. Rosa DeLauro, D-CT, the ranking member of the House Appropriations Committee, praised Connecticut’s decision to backfill full-service community school grants while criticizing the federal cancellations. DeLauro said 19 grants nationwide were cut midstream, including three in Connecticut. 

DeLauro said the House has advanced all 12 annual appropriations measures, though Homeland Security has emerged as a major sticking point, with Senate negotiations stalling on a separate six-bill funding package needed to avert the federal shutdown and cited $1.2 trillion across five bills and $64 billion for DHS. 

Shortly after her remarks, the US Senate failed to advance a six-bill funding package, rejecting it 45–55 and falling short of the 60 votes required, with eight Republicans joining all Democrats in voting no.

Advocates from the Connecticut Project Action Fund were present at Lamont’s supplemental update and warned that residents are already losing food assistance under new federal eligibility restrictions. 

“Regardless of Democrat or Republican, people don’t feel heard,” said Bridget Rivera, a member with the group. “A lot of people keep telling us they’re really concerned about HUSKY and SNAP, and we wanted to come hear from the governor himself.”

Garth Harries, president and CEO of the Connecticut Project Action Fund, said in a statement as many as 36,000 Connecticut residents are at risk of being cut off this winter.

“People are losing food right now,” Harries said. “We cannot food-bank our way out of this crisis.”

Lamont said the reserve has allowed the state to respond quickly as residents and providers face uncertainty. He said Connecticut increased support for the state’s 2-1-1 hotline after call volume rose from people worried about losing benefits or coverage.

Senate President Martin Looney defended the reserve’s flexible structure, rejecting criticism from some Republicans that it functions as a “slush fund,” and argued that shifting federal decisions make advance line-item budgeting unrealistic.

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

However, Senate Minority Leader Stephen Harding, R-Brookfield, said Wednesday at the annual COST town meeting that while Republicans and Democrats disagreed over how the fund was created, GOP lawmakers have not objected to using the reserve to offset Affordable Care Act subsidy reductions and other federal cuts.

“I think the good thing here in Connecticut is we’re working in a bipartisan fashion to address costs that may be coming down federally,” Harding said. “That’s an important example to set not only for our state, but for the country as well.”

House Minority Leader Vincent Candelora of North Branford also was a vocal proponent of the reserve when it passed the House.

House Minority Leader Vincent Candelora speaks about a state contingency fund in Hartford, CT on Nov. 10, 2025. Credit: Karla Ciaglo / CTNewsJunkie

“We’re creating a safety net that expires when we’re back in session,” he said in November. “This shows how government should work in a crisis — both parties at the same table, focused on solutions, not politics.”

Looking ahead, officials said Lamont will need to issue a new emergency declaration once the session begins, and lawmakers will vote in February on whether to extend the authority. Ritter said the House will need 91 votes under existing guardrails, and leaders signaled the mechanism could be updated to reflect shifting federal actions, but spending must remain tied to federal funding losses.

Lamont called the funding uncertainties an ongoing “three-alarm fire” and said the administration is reassessing federal impacts on a rolling basis but “cannot predict what will come next” even as Connecticut is better positioned than most states to respond.