Lamont Signs Declaration to Extend $330.8 Million Emergency Fund Through 2027 to Counter Federal Cuts

Governor Ned Lamont signed a declaration Tuesday that will allow the Connecticut General Assembly to extend the state’s Emergency State Response Reserve through the end of the 2027 fiscal year, according to the governor’s office.

The reserve, established in November 2025 with $500 million in state surplus funding, was created to respond to federal cuts to essential services implemented by President Donald Trump and Congressional Republicans. The fund currently has $330.8 million remaining and was originally set to expire on February 4, 2026.

“This emergency funding has been a collaborative process with the state legislature, and over the last several months it has been used judiciously and carefully to ensure that programs supporting basic needs – such as food and nutrition assistance, healthcare services, homelessness prevention and response, mental health services, and other health and human services programs – remain available and aren’t suddenly and cruelly terminated without warning,” Lamont said in a statement.

The governor established the reserve in collaboration with the General Assembly through Special Act 25-1 to counter cuts made through federal legislation including the so-called One Big Beautiful Bill Act and other federal administrative actions, according to the governor’s office.

Since its creation, Lamont has allocated two tranches of funding from the reserve. The first allocation, submitted on December 18, 2025, totaled $167.9 million. The second, submitted on January 29, 2026, totaled $18.7 million, according to state records.

The legislation establishing the reserve includes oversight measures requiring the governor to submit spending plans to bipartisan leaders of the General Assembly, who have 24 hours to review and potentially disapprove proposed expenditures before funds can be transferred. Both previous allocations were reviewed by legislative leaders and approved without objection, according to the governor’s office.

The declaration comes as federal funding uncertainty continues to affect state programs. Lamont cited ongoing instability in Washington, D.C., as the reason for requesting the extension, allowing Connecticut to maintain the ability to quickly respond to additional federal funding reductions.

“Here in Connecticut, we will stand with our residents to ensure they have the basic assistance and support they need,” Lamont said.

The General Assembly is expected to consider legislation in the coming days on the governor’s request to extend the reserve’s duration through the end of the 2027 fiscal year, according to the governor’s office.

The emergency fund represents Connecticut’s proactive approach to maintaining essential services amid federal policy changes. The reserve targets programs that support basic needs including food and nutrition assistance, healthcare services, homelessness prevention and response, and mental health services.

The bipartisan oversight structure built into the reserve’s operation requires legislative review of each spending proposal, ensuring collaborative decision-making between the executive and legislative branches. This process has functioned smoothly through the first two funding allocations, with no objections raised by legislative leaders.

If approved by the General Assembly, the extension would provide Connecticut with continued flexibility to respond to federal policy changes affecting state residents through mid-2027. The remaining $330.8 million would remain available for allocation following the established review process with legislative leaders.

The declaration follows months of uncertainty regarding federal funding for state programs, with the reserve serving as a buffer to maintain continuity of services for Connecticut residents who depend on federally supported programs.