State Taps Reserve Fund Again to Cover Federal Cuts
Connecticut draws another $18.7M from its emergency reserve as federal funding whiplash threatens SNAP benefits, mental health services, and school programs.
Connecticut officials drew another $18.7 million from the state’s emergency reserve fund Thursday to cover federal funding cuts affecting food assistance, health coverage, and school-based mental health programs.
The allocation brings total spending from the $500 million Emergency State Response Reserve to roughly $175 million since December, leaving about $330 million available as lawmakers prepare to convene February 4.
The largest chunk — $11.4 million — will fund Department of Social Services system upgrades needed to implement new SNAP and Medicaid rules under federal legislation known as the “One Big Beautiful Bill Act.” Governor Ned Lamont said the state investment comes with roughly $58 million in federal matching funds, making Connecticut the first state approved for a structure covering up to 90% of compliance costs.
The package also includes $2 million to expand community health workers helping residents handle eligibility changes through June 2027, $830,000 to replace funding for school-based mental health counselors, and $4.5 million to backfill canceled full-service community school grants.
House Speaker Matt Ritter warned a federal shutdown could happen “tomorrow or Saturday morning,” which would mark the second after a 42-day shutdown in November. He credited House Republicans for supporting the original emergency authority in a 126-20 vote.
US Rep. Rosa DeLauro, the ranking Democrat on House Appropriations, criticized federal grant cancellations that hit three Connecticut programs among 19 nationwide cuts.
State leaders said the reserve has become essential amid federal uncertainty, pointing to a $2 billion cut to mental health and substance-use services that was reversed within a day, and CDC funding reductions for local health departments that were rescinded within hours.
Advocates warned residents are already losing food assistance under new federal eligibility rules. “People are losing food right now,” said Garth Harries, president of the Connecticut Project Action Fund. “We cannot food-bank our way out of this crisis.” The group estimates 36,000 Connecticut residents risk losing benefits this winter.
Bridget Rivera, a member of the advocacy group, said constituents across party lines feel unheard about concerns over HUSKY and SNAP programs. Lamont said the state increased support for the 2-1-1 hotline after call volume rose from people worried about losing benefits.
Lamont will need to issue a new emergency declaration once the legislative session begins, with lawmakers voting in February on extending the authority. The mechanism could be updated to reflect changing federal actions.
Lamont called the funding uncertainties an ongoing “three-alarm fire” and said the administration reassesses federal impacts continuously but “cannot predict what will come next” even as Connecticut is better positioned than most states to respond.