(HARTFORD, CT) – Governor Ned Lamont today announced that his administration has submitted a supplemental plan to the bipartisan leadership of the Connecticut General Assembly to use funding from the state’s Federal Cuts Response Fund to mitigate the impact of federal funding reductions and other policy decisions made by the Trump administration and Congressional Republicans.
This supplemental plan, the third submitted by the Lamont administration since the fund was created late last year, will be used for several critical initiatives, including providing support for dairy farms, homelessness prevention services, refugee resettlement agencies, and academic research programs, among others.
- Connecticut’s dairy industry is facing dire financial conditions, as federally set milk prices have dropped 25% at the same time as fuel, fertilizer, and energy costs have increased due to the Trump administration’s tariffs and war in Iran.
- Federal cuts in homelessness prevention services, including delays in the Continuum of Care program, have forced Connecticut providers to reduce staff, limit new client intakes, and scramble for emergency bridge funding.
- The Trump administration has reduced the aid given to nonprofits that help refugees resettle in the U.S. by roughly 90%.
- Steep cuts in federal funding for academic research have forced UConn and UConn Health to reduce graduate admissions, community partnerships, seed funding, and staff. Without funding, potentially life-saving medical and other advanced scientific research is imperiled.
As required under the law establishing the fund, any time the governor wants to make an expenditure from it he must submit a plan to the Democrat and Republican legislative leaders detailing the reasons for its use, and then the leaders have 24 hours to review and—if it is their will—vote to disapprove of the expenditures. The two previously submitted plans were approved without objection.
“Connecticut will not stand by and let dairy farmers, refugees, homelessness prevention providers and those they serve, and researchers pay the price for federal chaos,” Governor Lamont said. “We created this fund to provide a safety net for the people and businesses being harmed by the Trump administration, and we’re going to keep using it protect our state and our values.”
Specifically, Governor Lamont’s third plan for use of the Federal Cuts Response Fund contains the following items:
- Funding for 50 new positions in the Department of Social Services to help with expanded operational demands resulting from eligibility changes under Public Law 119-21 in the amount of $3,300,000.
- Replace reductions in federal funding for research grants to the University of Connecticut in the amount of $21,000,000.
- Replace reductions in federal funding for research grants to the University of Connecticut Health Center in the amount of $14,000,000.
- Provide funding to the Department of Agriculture to stabilize Connecticut’s dairy industry, which has been impacted by federal policy changes, including declining Federal Milk Marketing Order pricing. The department will use a holistic multi-pronged approach, including but not limited to direct subsidies, reimbursement for enrollment in the USDA Farm Service Agency’s Dairy Margin Coverage program, and other supportive measures in the amount of $22,500,000.
- Provide funding to the Department of Labor to replace declining federal support for Unemployment Insurance (UI) to maintain current UI staffing dedicated to the various processes related to providing temporary income support to eligible workers who are unemployed in the amount of $17,000,000.
- Provide funding to the Department of Labor to replace declining federal support for UI related activities, including support for updates and modernization of the UI information systems in the amount of $500,000.
- Provide funding to the Department of Social Services for refugee assistance services to replace a significant reduction in federal funding for these services in the amount of $3,000,000.
- Provide funding to the Department of Housing for short-term housing stabilization programs in collaboration with community partners to address impacts of changes in federal policy and funding in the amount of $5,000,000.
- Provide funding to the Office of Policy and Management to design and develop affordable health insurance coverage options on the Access Health CT exchange, in the amount of $1,000,000. Eligibility changes at the federal level, as required by Public Law 119-21, have reduced access and funding for affordable health insurance options. The funds will support a feasibility assessment on network and plan design and provide recommendations on provider participation incentives, opportunities to maximize federal funding, market analysis and other strategies to reduce premiums and overall health insurance costs.
Prior use of the Federal Cuts Response Fund
The first plan was submitted on December 18, 2025, and contained the following items:
- $24,550,000 for food banks and pantries due to eligibility changes in SNAP.
- $64,100,000 for the replacement of expiring enhanced premium tax credits for residents enrolled in Covered CT.
- $50,760,000 to replace the loss of enhanced healthcare subsidies for individuals not on Covered CT.
- $5,000,000 in supplemental payments to federally qualified health centers to promote access to care for those at risk of losing coverage due to elimination of federal health plan subsidies.
- $6,880,000 in interim funding for expiring Continuum of Care grants to support homelessness prevention.
- $1,900,000 to cover the loss of federal reimbursements for services provided by Planned Parenthood of Southern New England.
- $4,700,000 in additional funding to 2-1-1 to support additional call volume and to community action agencies to support outreach for SNAP recipients understanding new eligibility requirements.
- $1,540,000 for the Connecticut Department of Social Services to help Medicaid and SNAP clients meet new eligibility rules.
The second plan was submitted on January 29, 2026, and contained the following items:
- $2,000,000 to expand the reach of community health workers and assist in helping resident understand changes to SNAP and Medicaid eligibility changes resulting from the One Big Beautiful Bill Act.
- $11,400,000 to support system upgrades at the Connecticut Department of Social Services to implement eligibility changes resulting from the One Big Beautiful Bill Act.
- $830,000 to replace the loss of federal funding for mental health counselors provided by EdAdvance to schools in northwest Connecticut.
- $4,513,000 to replace the loss of federal funding for Community School grants in Hartford, New Haven, and Waterbury that provide wraparound services, including healthcare and childcare.