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Home Business Journals

Lamont plans to withdraw $19M from emergency reserve

Funds would be used to make up for federal funding cuts to food, Medicaid assistance

Gary Larkin by Gary Larkin
February 2, 2026
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Gov. Ned Lamont. Photo by Gary Larkin

HARTFORD – Gov. Ned Lamont has submitted a supplemental plan to the bipartisan leaders of the Connecticut General Assembly to use funding from the recently created Emergency State Response Reserve in response to federal funding reductions and delays made by the Trump administration and Congressional Republicans.

This supplemental plan, which was submitted on Thursday, Jan. 29, totals $18.7 million and will be used to support items necessary for food and nutrition assistance, Medicaid assistance, youth mental health services in schools, and children’s wraparound services, including healthcare and childcare.

“Recent funding gaps on the federal level are continuing to cause nationwide challenges for health and human services programs, and here in Connecticut we will stand behind those who depend on these services and do what we can to ensure that this most basic assistance remains available,” Gov. Lamont said.

This is the second time the governor has submitted a plan to withdraw funding from the reserve, which was created in November through Special Act 25-1 in anticipation of federal funding reductions. A total of $500 million in state surplus funding was allocated for the reserve, and the enabling statute authorizes the governor to transfer funding from it in response to ongoing needs.

The governor’s initial plan to use the reserve was submitted in December and contains $167.9 million in expenditures. Those expenditures were reviewed by bipartisan legislative leaders, and without objection the funding was subsequently transferred to the recipient agencies and organizations.

The governor’s second plan contains the following:

  • Funding to expand the reach of community health workers, who will play a critical role in helping residents understand and navigate changes to SNAP and Medicaid eligibility under Public Law 119-21 (commonly known as the “One Big Beautiful Bill Act”). These workers will provide personalized assistance to help ensure individuals and families remain connected to the benefits they need through June 30, 2027, in the amount of $2 million.
  • Funding to support system upgrades at the Department of Social Services, ensuring the state can successfully implement the eligibility changes required by Public Law 119-21 in the amount of $11.4 million for the state share of these costs.
  • Replace funding for mental health counselors provided by EdAdvance to schools in the Northwest region of Connecticut through June 30, 2027, in the amount of $830,000.
  • Replace funding for Community School grants for Clifford Beers in New Haven, Waterbury Bridges to Success, and Hartford Public Schools, which provide healthcare and childcare to children and families in these communities through June 30, 2027, in the amount of $4.51 million.

 

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